BOROSIL RENEWABLES LTD (NSE: BORORENE) Q3 2025 Earnings Call dated Feb. 17, 2025
Corporate Participants:
Pradeep Kumar Kheruka — Executive Chairman
Sunil Kumar Roongta — CFO & Whole-time Director
Ashok Kumar Jain — Whole-Time Director
Analysts:
Rohan Gheewala — Analyst
Sunny — Analyst
Bajrang Bafna — Analyst
Deepa — Analyst
Rikin Shah — Analyst
Saket Kapoor — Analyst
Vineet Gala — Analyst
Rabindra Nayak — Analyst
Nikhil Gada — Analyst
Lalit — Analyst
Presentation:
Operator
Hello, ladies and gentlemen, good day and welcome to the Q3 FY ’25 Results Conference Call of Renewables Limited hosted by Axis Capital Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr Rohan Kiwala from Axis Capital. Thank you, and over to you, sir.
Rohan Gheewala — Analyst
Hank you. Good evening, everyone. On behalf of Axis Capital, I’m pleased to welcome you all for the Q3 FY ’25 earnings conference call of Porosil Renewables Limited. We have with us the management represented by Mr P.K., Executive Chairman; Mr Ashok Jain, Whole-Time Director; Mr Romta, Whole-Time Director and Chief Financial Officer; and Mr Balesh Talapadi, VP, Investor Relations. We thank the management for giving us the opportunity to host the call. We will begin with the opening remarks from the management, followed by an interactive Q&A session. Thank you, you and over to you, sir.
Pradeep Kumar Kheruka — Executive Chairman
Good afternoon and welcome to the Borosal Renewables Quarter Three Financial year ’24-’25 investor call. This is Pradeep, Chairman. On the 14th of February, the Board of Borosil Renewables approved its company’s financial results for the 3rd-quarter of the current financial year. Our results and an updated presentation have been sent to the stock exchanges and have also been uploaded on the company’s website. We will discuss the operations of the company on a standalone basis as well as on a consolidated basis.
The total sales during the 3rd-quarter of the current financial year grew by 14% in volume over the previous quarter, but could achieve only a growth of about 3.6% by value from — to INR275.28 crores, up from INR265.61 crores in the preceding quarter. The price pressure came from a steep decline in average X prices driven by increased Chinese dumping at ever lower prices. These fell to about INR105 per square meter, which would correspond to about INR42,000 per ton, down from the preceding quarter’s average selling price of INR115 per millimeter per square meter, which would work-out about INR46,000 a ton.
The EBITDA stood reduced at Indian rupees INR20.89 crores as against Indian INR52.88 crores in the preceding quarter. The imposition of a 10% basic customs duty on imports from 1st October last year failed to make any impact on the landed prices of the imported glass because the Chinese cut their export FOB prices by 18% in ocean freight during the quarter. Additionally, the company had to incur an expense of INR4.59 crores on account of a non-routine repair. It also incurred a debit of expenses related to rights issue which further impacted the EBITDA by another INR2.01 crores. Export sales, including those two SEZ customers amounting to INR16.02 crores in the 3rd-quarter of the current financial year, accounted for 6% of the turnover compared to Indian 34.39 crores in the preceding quarter when exports made-up 13% of turnover.
All the major export markets are showing lower demand due to reduction of local manufacturing as cheap Chinese modules dominate the installations. The decline in EBITDA has led to the company posting a post-tax loss of INR8.64 crores in the 3rd-quarter ’24, ’25 compared to a profit-after-tax of INR12.62 crores in the previous quarter and a post-tax loss of Indian INR11.04 crores in the corresponding quarter in the last year. After a rise in September 2024, solar glass imports reverted to the previous still exceptionally high levels. Despite our customers being highly stocked up with extremely large volumes of cheap imported glass, our sales team was able to induce them to buy even higher volumes as compared to the previous quarter and was thus able to bring down the finished goods inventory during the quarter.
Now coming to perhaps the most significant development in the last quarter, on the 4th of December last year, the Ministry of Finance notified a provisional anti-dumping duty on imports of solar from China and Vietnam, by virtue of imposition of a reference price, based on the recommendation by the DGTR that the Director General Trade Revenue, which I shared with you during our previous investors call. This has brought great relief to the company. Sale contracts already entered for supply in December were executed at the old pressed prices and hence these results do not reflect the greatly improved business prospects of the company. Following-up on the above,
I’m pleased to inform that the investigation now stands concluded and that BGTR has issued its final findings about the imports having caused material injury to the domestic industry. Recommending the imposition of a definitive anti-dumping duty on all the imports of solar glass originating in or exported from China and Vietnam, as well as anti-subsidy duty on imports from Vietnam for a period of five years from the date of issue of the preliminary duty notification issued by the Central government by notification number 26/2024 Customs ADD dated 4th December 2024. These findings have been published in the Gazette and forwarded to the Ministry of Finance for further action.
The company welcomes this decision and remains optimistic about the imposition of final anti-dumping and counterwheeling duties by the Ministry of Finance. This measure will restore fair competition and create a level-playing field for domestic manufacturers further strengthening India’s solar glass industry.
Landed prices of imported glass reflected the full value reflected the full impact of the duties immediately with effect from 4 December 2024. The impact of the improved prices will get reflected in the company’s financial performance with effect from the beginning of January and are expected to move near the level of the reference price during the quarter. Based on the prevailing rates of exchange, this would work-out to about Indian INR140 per millimeter per square meter, which would correspond to about INR56,000 per ton.
Solar glass industry is capital incentive — intensive with a low asset to turnover ratio, which is about INR100 to INR80 crore, that means for INR100 crores invested with INR80 crores of turnover. Moreover, the company must provision a complete rebuild of its glass melting furnace every five years. As such, this level of selling price is essential for the domestic solar glass industry to be able to offer an IRR acceptable to long-term investors, ensuring the long-term sustainability which supports further expansion.
The demand for solar glass remains buoyant. Manufacturing capacity for solar modules has already reached above 75 gigawatts, which is expected to double to 150 gigawatts in two, three years. The solar installations are also rising as can be seen from the data for the year ended December 2025. We believe this year we will see installations of 25 gigawatts, which means module consumption of about 35 gigawatt gigawatts as against 15 gigawatts last year. This rate of installation is expected to speed-up in the coming years and we may expect to see installations rising to 40 to 50 gigawatts annually going-forward. Use of locally produced modules has risen sharply after the implementation of ALMM mechanism from April 2024, which has already led to increased demand for all the components including solar glass. Similar support is also being extended by the government to solar cell manufacturing by bringing in approved list of cell manufacturers, ALCM with effect from the 1st of June 2026 and mandating use of locally produced cells. This will make the solar value chain stronger and more resilient present solar glass capacity in the country is 2,300 tonnes per day, which is about 15 gigawatts.
Another 15 gigawatts is getting commissioned by the end-of-the current calendar year 2025. With a phenomenal rise in-demand in recent times, imports currently occupy about 55% to 60% share in the consumption for domestic installations, leaving the scope for import substitution wide-open. Immediately upon imposition of ADD, work on further 11.25 gigawatts has begun, including 3.25 gigawatts by your company, taking the total capacity to 41.25 gigawatts or 6,300 tonnes per day. We believe this steps ensure creation of a dependable supply-chain in this critical aspect of solar power.
Now I come to the consolidated results for the quarter, which includes the operations of the subsidiaries. A, the overseas subsidiaries, including the step-down subsidiaries have generated net standalone revenue of INR86.2 crores and negative EBITDA of INR14.38 crores for the 3rd-quarter financial year ’24-’25. The sales performance has declined over the preceding quarter. We had a net revenue of INR107.4 crores, although the negative EBITDA was restricted to INR16.85 crores. This was due to a slow demand and lower level of operations. The consolidated net revenue for the quarter under review stands at INR361.49 crores and EBITDA of INR5 crores as compared to net revenue of INR373 crores and EBITDA of INR34.57 crores in the preceding quarter.
The considerable decline in EBITDA has arisen from the lower profitability of Indian operations, mainly due to the low selling prices as discussed earlier. While the German solar industry was waiting for the government to implement its promises to augment domestic manufacturing. The government itself went into crisis, leading to the call for fresh elections on 23rd February. Since no recession could be expected till the formation of a new government, we decided to cool down the furnace on 31st December 2024, thus temporarily pausing the hot end operations.
During this time, we are — we are continuing the processing of available annealed glass and partial operations. After formation of a new government post the ensuing elections, we shall await the policies in respect of the domestic manufacturing of solar photovoltaic modules. Until then, the bulk of the workforce has been put on short-time work during which they are paid two-thirds of their wages by the government while they stay at-home, thereby reducing the financial outflow from the company. Necessary cash-flow support has been provided to the subsidiaries to meet the financial obligations. We shall observe the developments over next three months and take next steps based on future possibilities.
The EU Parliament has maintain that 25% of renewable energy generated must come from components and modules made in EU. We expect the new government to implement this policy. Our standalone results are expected to show a marked improvement in profitability in the ensuing quarters on the back of better selling prices going-forward. Meanwhile, the company is seeing improving yield in its Indian operations as the team is getting to understand the new furnace better. We are making efforts towards minimizing the losses of the German operations by taking all possible measures. We believe there are good prospects for the German operation.
I would like to update you on the preferential issue. The company received in-principle approvals from the BSE Limited on 4th February and NSE Limited on 3rd February 2025. Necessary documents were sent to all the applicants on 5th February to pay the application amounts by 13th February. The promoters subscribed to the shares for the entire committed amount of INR100 crores. I’m pleased to inform you that despite prevailing market conditions, 91 applicants who have subscribed to 78 lakh 80,436 warrants and have paid the application money of 25%, totaling to INR104.42 crores towards the issue amount of INR417.66 crores, while the balance choose not to pay despite their applications. The allotment of shares warrants was done on Friday. The proceeds of INR517.66 crores, including the promoters applications will be utilized in due course as per the objects of the issue. We shall work on the expansion. 500 tonnes per day has started and we shall firm up the project cost and take steps to place orders for long-lead items over the next few months. We expect to commission the new facility by September 2026.
We remain positive on the sector and see good prospects for the company over the next few years looking at the strong growth in the installations of solar modules and support from the government to ensure a level-playing field for components. We remain technologically competent to meet market demand for the most important products.
With that, I would now like to open the floor to questions that you may have. Thank you.
Questions and Answers:
Operator
Thank you, sir. We will now begin with the question-and-answer session. Anyone who wishes to ask a question may press star N1 on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star N2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.
Pradeep Kumar Kheruka
Meanwhile, the phone I’m using the battery is dying. Could you possibly do call me on my mobile phone?
Operator
Yes, sir. Could you give me a mobile phone number? Just give me. Yes, sir, please go-ahead.
Pradeep Kumar Kheruka
9821037435.
Operator
I’ll call you up instantly.
Pradeep Kumar Kheruka
Yeah, thank you.
Operator
Ladies and gentlemen, I would request you to stay online while I get the management on the call. Thank you at the tone please record your message when you have finished recording, you may hang-up. Thank you for your patience. The first question comes from the line of Sunny from IFA. Please go-ahead.
Sunny
Hi, sir, am I audible? Yes. Sir, I have a question regarding you have recently raised INR570 crore on the — including promoter and promoter. So what is the capex outlay for 500 ton? That will take you under the capex?
Sunil Kumar Roongta
So the capex on the 500 ton furnace was initially estimated at INR675 crores and out of that, certain amount out of these proceeds will be useful funding that and balance will be funded from accruals and bank loans.
Sunny
Sir, I was a follow-up question. You had canceled the ITC of INR30 crore and was around INR5017 crore out of which INR100 crore has been issued given that for promoter itself. Why not? You raised for INR50 crores from the shareholder and used all that amount for the capex, which was INR625 crores.
Sunil Kumar Roongta
Can you repeat your question please?
Sunny
Sir, actually.
Pradeep Kumar Kheruka
Voice is very low, man. Can you be louder please? Sunny, good line-item.
Operator
Sir you need to come on your handset more, Sunny, in case if you are on the speaker.
Sunny
Am I audible, sir?
Pradeep Kumar Kheruka
Yeah, please go better.
Sunny
Sir, your original plan was today INR50 crores through before. However, you choose to raise the fund using preferential in which INR100 crore buy given by promoter and raise INR417 crore by given by non-promoter. Why not raise the INR450 crores from the existing right if you to use the further capex of INR3500 crore.
Pradeep Kumar Kheruka
See, the right issue was going on. And in the meantime, we were approached by some investors that they can put in money by way of a preferential issue and the amount could be larger. And around that time this duty — anti-dumping duty announcement was also made by the government. So we thought of combining the fundraise requirement from, say, INR450 crores to almost INR700 crores. So the thought process was that we meet all the objectives in one issue and don’t go-to-market time and again. Finally, we all got less amount, that is another story because of the market situation. But while going for the preferential issue, the stock exchange has laid down the condition that you can — you cannot concurrently run two issue of shares. So they wanted us to withdraw the rights issue.
The right issue has already been withdrawn. So there is nothing in the right issue now. Whatever right issue, INR450 crore was there, it is gone now. It’s withdrawn already.
Sunny
So I have another question sir. So now that data is on from.
Operator
Audible.
Sunny
Sir, am I audible?
Operator
Yes, yes, you need to adjust your handset a little bit, because there’s a lot of muffling that’s happening.
Sunny
Am I audible, sir?
Operator
Yes, much better.
Sunny
Sir, while I see that anti-dumping duty effective from 5 December ’24. In the past we have seen that China used Malaysia for dumping the product via Malaysia to India. Are we seeing that in scenario also?
Sunil Kumar Roongta
See the until say the time the duty was imposed on China and Vietnam, the imports from Malaysia were barely anything. But as you rightly pointed out, when the situation changes, the duties get changed, the Chinese use their other territories to export to India. So there are exports which will come from Malaysia. But what we feel is that all the exports cannot come from Malaysia, first of all, and all the customers are not in a position to get material from Malaysia. So there is a tremendous demand in India. And even if some customers want to import from Malaysia, that is possible that it will come at a low-price. But on the other hand, this company is a listed company on the stock exchanges, the Malaysian company and also they are also, I mean, responsible for their profitability. They have been earning less income in the past and they have certain plans to invest more money into the — into the business. So we — what we’ve seen is that the Malaysia has already started quoting higher prices, although it is still lower than Chinese prices, but it will not be very cheap in terms of the dumping. So we expect certain pushback from the customers who would potentially be importing from Malaysia, but we have more customers to sell our goods to. So it should not be a problem.
Sunny
So on the next question, while on the approval from Digit, our commerce Ministry has approved the anti-dumping duty and how much it will take time for the finance ministry to recommend or probe or deny the anti-dumping duty.
Sunil Kumar Roongta
So there is no fixed guidelines, I would think, but the generally the time which finance ministry takes in extreme case is three months. From the date of submission of final recommendation by the DGTR. So from that perspective, we should expect this decision to be in the beginning of May at the most — at the latest.
Sunny
So any timeline for upcoming capex going-live in.
Sunil Kumar Roongta
That covered by Chairman in the speech. By September 26, we will be able to commission the plant.
Sunny
So it will be downfield. Well, it is on the same-location.
Sunil Kumar Roongta
So to that extent like land and other utilities are available there, but we already consumed lot of advantages in the past expansion. So there will be certain expansion — certain benefit of the brownfield expansion, but it will not be significant.
Sunny
Okay. Thank you, sir. That’s it from my side.
Operator
Thank you. The next question comes from the line of Bajrang Bafna from Sunidhi Securities. Please go-ahead.
Bajrang Bafna
So really I wish you all the very best for the anti-dumping duty that has been put up by the government and which will definitely change the fortunes of this industry. So just to get a sense, sir, we see there are multiple vendors or the multiple competition, which is going on aggressively in India as far as modules are concerned or maybe the sales are concerned, we are getting a figure. So next two, three years will have the capacity to the tune of 150 gigawatt for the modules and close to 70 to 80 gigawatt for sales. But when we see the similar thing for glass where we are active, even you have covered in your opening speech that 6,300 tons per day capacity is something which is envisaged and that will support close to 41 gigawatt of solar capacity. So still there is a huge gap between the capacity which is getting built-up on the sales side or maybe for the module side in India. So just your sense on that, that where from the additional demand of glass is going to be met when these capacities comes on-stream maybe two or three years down the line. So some sense on that and our competition apart from you and Visaka, which are the two major players. Any other competition that is you know, coming up in that space will be really helpful, sir, to understand.
Sunil Kumar Roongta
So you’re right, the capacities of module manufacturing would — are expected to rise 250 gigawatt. But when we talk of that capacity, it is a nameplate capacity. Actual utilization, what we’ve seen is that it is close to, 45% 50%. So we can — we can assume that the actual utilization is not likely to exceed 65, 70 gigawatt in that sense. And similarly, the solar cell capacity, if it is at 70, 80, it will match with the module production and the requirement of solar cells.
But in the case of glass, actually the industry is a heavy of heavy capital-intensive industry and the time to commission the project is longer than like the module industry. In module industry, one can commission probably in six to six months-to one year, but the glass industry takes 18 months-to two years’ time. So in the past, no fresh investments have been made by the players because of the absence of anti-dumping duty from 2022 till now. And now that the investments are starting, it’s just the beginning that the capacities are rising from 15 gigawatt to 41 gigawatt, which itself is very, very good number. But I would imagine that with the current reference price under the antidumping duty, you may see more investment coming into this sector and the demand can be made by local production itself. In any case, the imports are available for somebody who wants to import and if there is a deficit in the domestic productions.
Pradeep Kumar Kheruka
I may — I may add something here. I’m Pradeek here. The thing is that we are seeing about an expected 25 gigawatts of installations in India this year. And if the next year it goes up to even 45, then that will be a very, very big jump, all right. And when we talk about capacity here, there’s a lot of glass — there’s a lot of modules going abroad for which nobody will use Indian glass that they will buy imported glass under advanced license at lower prices. So I do not see any mismatch arising, assuming even that 45 gigawatts of modules are manufactured, we should find the glass in India. As I mentioned, by the end of this year, the glass capacity is expected to rise above 40 gigawatts. Thank you.
Bajrang Bafna
Okay, got it, sir. And sir, if we assume that the ruling prices goes into a strim, let’s say this INR56 rupees a KG sort of realization as compared to INR42 now after the ADD. And you know the channel checks are indicating that already the prices are rolling up closer to INR50 a KG right now and very hopeful of going to, let’s say, closer to this INR556 numbers maybe two, three months down the line. So what sort of margins you know are possible once the realization becomes INR55? Are the additional advantage you know, will be directly boiled down to the EBITDA numbers or can we also expect some sort of cost increase when the prices goes towards this INR55, INR56 a KG number? There should be broadly for cost increases.
Sunil Kumar Roongta
Yeah. Broadly it will lead to the profit only because it’s a selling price which is going up and it does not have any bearing on the cost at all. I mean, in terms of additional cost. So it should all add-up to the increment in the EBITDA margin. And we believe that margin at this price, even if you realize at the full INR56,000 could be near 30% or so.
Bajrang Bafna
Okay. So this 30% is something which is sustainable provided we get this INR56 or INR55 AKG realization?
Sunil Kumar Roongta
Absolutely.
Bajrang Bafna
Yes. Got it, sir. And just sir, at these realizations, you know, are you also anticipating or planning for further capex because as you pointed out that this capacity might be sufficient for FY ’26, this 40 gigawatt and the current domestic requirement will be closer to that. And maybe in ’27, ’28, again, the demand is going to be far higher. So the existing players, since there are huge entry barriers in the existing players need to ramp-up the capacity further, you know, to take the challenge of 27 and ’28. So can we expect from the company maybe six months or 12 months down the line to further augment the capacity to meet the rising demand of ’27 and.
Pradeep Kumar Kheruka
I would say yes, definitely, because you see when the anti-dumping duty came, there was only 1 gigawatt of production in the country and within five years, within four years, we had 17 gigawatts. So I feel that there is a lot of enthusiasm amongst the manufacturers and the investors also. So people will join their resources and they will definitely come up with the capacity. I personally don’t see any reason why it will not come up.
Bajrang Bafna
Okay. Okay. And just sir, my — the initial question was on the competition. Apart from you and Visaka, whole are the other players who are also in the — who can we can see the.
Pradeep Kumar Kheruka
There is a company called GoldPlus, which is a very respectable player. They have four float lines running. We have set-up one solar line for 300 tonnes per day. I think we’ll come up with another one of 300 tonnes per day. There’s glass with 250 tonnes, there’s glass with 150 tons. There’s emerged glass with 300 tonnes. So quite a few people. And then of course, Vishaka and ourselves. So there — these are all respectable players who have been in the glass business for a long-time. So this should be credible capacity, plus new people who have announced.
Bajrang Bafna
Okay, got it. Thank you. And all the very best, sir.
Pradeep Kumar Kheruka
Thank you.
Operator
Thank you. The next question comes from the line of Deepa from Nivesh Online Securities. Please go-ahead.
Deepa
Am I audible?
Operator
Yes.
Deepa
Sir, my question is, is there any fundraise companies planning in coming future?
Ashok Kumar Jain
I hope. No, currently, currently we are just — we have just completed the fundraise. So currently there is no plan. But in case there is some planning late at a later-stage, we will of course come back to the investors and shareholders. For the expansion which we are currently taking on-hand, we don’t think further funds may be raised from the equity, but it’s all subject to Board taking a call depending on the situation.
Deepa
Okay. My last question is how much budget the company has parked for R&D in coming FY ’25.
Ashok Kumar Jain
So we have a — we have a complete R&D center, which is headed by very senior techno — technical people and with a strong team. And they are all engaged in various developmental activities for future as well as for the current operations. So I would think the current expenditure would be nearly INR6 crore per annum on that activity.
Deepa
Okay, sir. Thank you so much and all the very best for your coming quarter results.
Pradeep Kumar Kheruka
Thank you.
Operator
The next question comes from the line of Rikin Shah from Boring AMC. Please go-ahead.
Rikin Shah
Hi, Mr. So in anticipation of this, is it possible that the module lineup manufacturers might have slightly stocked up in the previous months?
Sunil Kumar Roongta
Yes. There is every possibility that they might have done it except that you see the duty has already been applicable from the 5th of December. So any further — any imports that have been cleared, the imports might have been made earlier, but if they have cleared from customs after 5th December, they would have had to pay the additional duty. So therefore, under the circumstances, it is not likely that anybody would be spending money to just stock up for no good reason, because there’ll be no — there’ll be no advantage.
Rikin Shah
Got it, sir. That’s all from my side. Yeah.
Sunil Kumar Roongta
Thank you.
Operator
Thank you. The next question comes from the line of Saket Kapoor from Kapoor Company. Please go-ahead.
Saket Kapoor
Yeah., sir, and thank you for the opportunity. Firstly, sir, what are our utilization levels currently for this quarter and for the nine months?
Sunil Kumar Roongta
We are running at a production rate of about 950 tonnes against our 1,000 ton capacity and we are trying to ramp-up production even more. So let us see what happens in the current quarter, we could be improving on the levels that we achieved in the last quarter.
Saket Kapoor
Okay. And sir, what are the key components of the other income and could you give the color on the?
Sunil Kumar Roongta
Ashok.
Ashok Kumar Jain
Sorry, can you repeat the question, please?
Saket Kapoor
My question is, sir, what are the key component of the other income?
Ashok Kumar Jain
Other income for this quarter was at INR15 crores. So other income comprises of certain incentives which we get from the government of Gujarat under the scheme of the industrial expansion. And these are in the form of various type of incentives and then there is export-related income, which comes as a part of other income in the standalone accounts. And great sales sales.
Saket Kapoor
Okay. And as sir, as you mentioned in the early opening remarks also and during the answer also that the prices have moved up from 104 to some 144 number metrics which you gave. So taking into account that metric, sir, what would have been the revenue from operations for the December quarter had these prevailing prices being implemented?
Ashok Kumar Jain
Since for the coming quarter, you are anticipating the average realization to move-up closer to the level jump or up to duty cover benefit.
Saket Kapoor
So what should be in terms of the revenue moving up now with 95% of utilization levels.
Ashok Kumar Jain
Sorry, it should go by another INR60 crores or so per quarter.
Saket Kapoor
Okay. Okay, without any effect on the P&L expense side, as you told earlier that after expense line at a move India was arrange here, that will still go to the worse. Production, but so to that extent, guys. And that kind of additional cost for additional production. Listen, after prices moved the preages level because of the imposition of ADD. If that reflects in last quarter, say, hypothetical numbers, the revenue would have gone up by INR60 crores, but there would have been no impact on the P&L side because P&L expenses are going to remain the same. So this would have directly translated to the bottom-line. This understanding is correct,
Sunil Kumar Roongta
Sir. Yes, please. Your understanding is correct. It will translate to the profitability, profit EBITDA level at EBITDA level.
Saket Kapoor
At EBITDA level or PBT level, yeah.
Sunil Kumar Roongta
Both EBITDA, PBT?
Saket Kapoor
Okay. And sir, now about the German subsidiary outlook, sir. Abhi, sir, some quarterly CAL losses, last quarter my M&A CAL loss and going ahead to say your incremental losses have okay levels has reduced whatever the quarter basis Batana yes, it’s from Germany Deshmit or Hani so
Sunil Kumar Roongta
We don’t have any experience with this. So we are still paying about 23% 24% of the salaries that we were paying to the workers. 63% to 67% is being paid by the government. Now all the expenses associated with running the furnace, which means electricity, gas, oxygen, etc. These have all stopped. The expenses of the workers has also stopped. So it’s difficult to say. I mean, I can’t say that we made a very sharp calculation on that because these accounts are maintained by the German subsidiary directly and we normally get the figures at the end for amalgamation into our accounts. So I wouldn’t be able to give any very cogent answer at this point on that question.
Saket Kapoor
Okay. But do you have the fixed-cost expense of running this German subsidiary on a quarterly basis or on a yearly basis, the fixed-cost that you incur?
Ashok Kumar Jain
Yeah, yeah. I’ll answer your question, please. The current losses which were happening at Germany at EBITDA level were close to INR8 crores per month. Okay. Okay. And this will — this way — this way proposed to bring down to less than half. So by virtue of this step what we have taken of short-term work and shutting down the furnace operation, we expect the EBITDA levels to come down to almost INR4 crores per month, from INR8 crores.
Saket Kapoor
Okay. Yeah. Right. And lastly, sir, on the power and fuel line-item, since you alluded to the fact of the — it is capital incentive, sorry, but power and fuel cost per car rationalization steps some layer, just say is car proportionate in terms of the cost line-item can be reduced going ahead?
Ashok Kumar Jain
So powering the. Power and fuel, we are already economizing by virtue of reducing the — or controlling the expense at the consumption level. And by increasing the productivity of the goods at the factory, this percentage is again going to come down. It has already come down in the last quarter compared to the corresponding quarter, but we expect it to go down further. Moreover, we are taking steps to install another solar wind hybrid of 16.5 gigawatt which will be active megawatt, sorry, which will be under captive mechanism, which will again bring down the cost of power for us going-forward from, say, July to September ’25.
Saket Kapoor
Correct, sir. Right, sir. Thank you, sir. I’ll join the queue and all the best to the team, sir., sir.
Ashok Kumar Jain
Thank you. Thank you.
Operator
Thank you so much. The next question comes from the line of Vineet Gala from Xylem Investments. Please go-ahead.
Vineet Gala
My questions have been answered. Thank you. Thank you.
Operator
The next question comes from the line of Rabindra Nayak from Sunidhi Securities. Please go-ahead.
Rabindra Nayak
Am I audible?
Operator
Yes. Yes, yeah.
Rabindra Nayak
Sir, thank you for the opportunity. I — my questions regarding this, see, you mentioned that your turnover will grow up by around INR60 crores if the — you know, the current price is maintained and you improve the utilization. So can we expect the entire at least 60% to 70% will come to the bottom-line in this 4th-quarter?
Sunil Kumar Roongta
See, we are trying to raise the prices towards the reference price, which is say INR140 or say INR56,000. But as of now, we have not still reached there. So it is difficult to say that how much percentage will come. But whatever number we are saying is about INR60 crores or so, we are aiming to reach that level very soon. Maybe it will happen on monthly basis from March. But on an average January to March, it may not reach the exact number.
Rabindra Nayak
Okay. Okay. But currently in January, have we seen this development in our financials or it is still early to say something on this?
Sunil Kumar Roongta
No, it’s already happening. We are at as we speak, we are close to 90% or already in terms of the increase. So we — there is a tremendous amount of rise in the price of solar glass after this duty and it is inching towards the — towards the target numbers.
Rabindra Nayak
Okay. And secondly, about this reason for the closing of — sorry, so operation cool down operation in Europe. So first of all, what is the realization where the dumping is happening and what is our cost — our price there in Europe, in Germany?
Pradeep Kumar Kheruka
Actually, we already have an anti-dumping duty on imports of solar gas in Europe. So there is — the selling — the selling price is not the issue at all. The issue is very different in Europe. The issue is the people who are manufacturing modules, they have shut-down their business. So there is no customer for us. So the customer list has dropped dramatically. Very few people are there. So the quantum of glass which we are able to sell to those customers is so insignificant in quantity, it cannot service a furnace of the size that we have. So that is the reason for closure, not because of selling prices, because the absence of demand.
Rabindra Nayak
Okay. So you mentioned some days you were mentioni0g that the glass is well acceptable in certain parts of Europe and some Italy, somewhere the region is. Still it is not there you meant to say.
Pradeep Kumar Kheruka
Sorry?
Rabindra Nayak
Because this glass we are manufactured in Germany has got some specialist character. So that is why it is well-accepted in other parts of Europe. So still you are facing demand and from those regions also.
Pradeep Kumar Kheruka
Yes, because the glass is accepted, but the person who is accepting the glass is not able to sell the modules at a profitable price. So when he buys the glass, he manufactures a module, there is no market for the module at the cost of production. So therefore, he has to shut-down the business. So the demand has dried up.
Rabindra Nayak
Okay. Okay. And regarding you mentioned revised, yeah. Yeah. You mentioned that INR4 crores you are you will try to reduce the cost from INR8 crores EBITDA to loss to around INR4 crores. So what is the employee cost you have to bear in this four crore?
Ashok Kumar Jain
It’ll be close to two crores. INR2 crores.
Rabindra Nayak
Another INR2 crores will be the operation related, yeah. Okay. And how long it will continue according to you because you have an operation there in the plant and how long these things will continue according to your understanding.
Ashok Kumar Jain
So chairman in his speech has already clarified that we are expecting the German government to be formed and once the new government is performed and they announce the policy we will wait until then because currently there is nothing possible which will turn the situation. So we’ll have to have some patients for nearly three months now. And until then we will just process the current glass available and try to see that the expenses are minimized.
Rabindra Nayak
Okay. Okay. So is there any plan, if nothing will materialize, what is the plan you have — we are thinking in our mind for this plant in Germany?
Pradeep Kumar Kheruka
So you see the thing is this that the European Union Parliament has already passed a resolution for the entire European Union that 25% of the solar energy which is used in Europe should come from equipment which has been manufactured in European Union, okay. Now because the last coalition government in Germany, there was a lot of dispute between the partners of the coalition government, they could not come to a policy decision on this matter. So frankly speaking, the reason that we are we are continuing with it and all that and have not completely shut-down the plant because we think there are very good prospects of the new government which is elected to come to some understanding and some agreement on this subject. And therefore, in our opinion, there is a good chance that something will happen. But frankly, until and unless it actually happens, everything is conjecture.
Rabindra Nayak
Okay. Okay. Sir, regarding this duty in India, so the — we have — the government has come out in anti-dumping duty for the particular Chinese manufacturers. So is there any way according to you is available for Chinese manufacturer to bypass this anti-dumping duty and dump in India? Is there any — you mentioned about this Malaysian thing. Now is there any other mechanism available for the Chinese manufacturer to bypass this according to you.
Pradeep Kumar Kheruka
It should not be easy because in Southeast Asia and Asian area, the only Vietnam, China and Malaysia currently manufacturing solar glass. So at this moment, it should be very difficult for them to bypass it. But we don’t know everybody is very intelligent and everybody tries all kinds of tricks. So we’ll have to see that.
Rabindra Nayak
Okay. So do you think that there are some enough ideal capacity of clients is available in these regions, particularly in the Asian region to have this bypass duty, is there availability I’m just asking according to you. What do you think what capacity, I’m just saying glass capacity or what? I know there are no idy capacity of.
Pradeep Kumar Kheruka
Glass only in China. I think there is idling capacity.
Rabindra Nayak
Okay. Okay. Okay. Okay. Thanks, sir.
Operator
Thank you. The next question comes from the line of Nikhil Gada from AMC. Please go-ahead.
Nikhil Gada
Yeah, hi. Thanks for the opportunity. Sir, my first question is, can you sort of highlight the current a capacity that is there of Indian manufacturers in India? I think you sort of mentioned that a we might see addition of 11 to 12 gigawatts. I was under the assumption we were at around, 15 16 gigawatts currently. Then when you said that we go to 41 gigawatts, I just wanted to understand the math here.
Ashok Kumar Jain
Sorry, the current capacity is 15 gigawatt and another 15 are getting added in this calendar year. Okay. After that, after that another 11.2 gigawatt is under implementation from Vishaka and our sales. So that will commission in 2026. So at the end of 2026, we expect this to be at least 41 gigawatts. That’s the current status. If there is any other announcements which comes in-between, that will also get-in?
Nikhil Gada
Understood, sir. So this 15 gigawatts that you’re saying, the first level that is going to come in this particular year, right?
Ashok Kumar Jain
Yeah. Yes, this calendar year.
Nikhil Gada
Okay, okay. And then you’re saying the next one will be in the calendar year ’26, which will be we envisa. Okay. Got it, sir. And sir, in terms of one, there is a little. So in terms of this anti-dumping duty as well as CVD, while the commerce Ministry has approved it, do we see any changes that might happen when it comes to the finance ministry or the government approving it, we might see some lower duty or something like that. How confident are we about getting this approved?
Pradeep Kumar Kheruka
Normally the finance ministry does not reduce it or anything like that. We have not seen that kind of action in the past. But you see, we cannot make any conjecture whatsoever on what the government might do, right? So we just know that the Ministry of Commerce has done it with final findings, they’ve given a very long order. We have given lots of reasons. So in the ordinary course, this should get approved. But until it gets approved, it’s in the gazette, everything is open.
Nikhil Gada
Got it, sir. And sir, just lastly, you know, in terms of your overall debt and everything, so if we see currently, you mentioned that this INR375 crore capex, some amount of it you will put it from the money raised and I think the remaining you might take debt or something. So can you help us with how the overall capital?
Sunil Kumar Roongta
Capex is more like INR800 crores, not INR375 crores. I think INR75 is what we are going to be funding from the money that has just been raised.
Nikhil Gada
Correct. And the remaining money, sir?
Sunil Kumar Roongta
Will be internal accruals, loans, debt as required.
Nikhil Gada
So in that case, what kind of a debt profile we might look at for ’26, ’27 number,
Sunil Kumar Roongta
We — as a corporate policy, we would not go to more than 2.5 times of the debt-EBITDA. Okay. Sorry, this debt-EBITDA, yeah.
Nikhil Gada
Understood, sir. And sir, anything on the working capital side as well, do we see the working capital cycle per se improving because of all these measures?
Sunil Kumar Roongta
Working capital signs cycle will slightly improve with the expansion because the — you don’t need same amount of, say, inventories for the purpose. But the credit to the customers is roughly the same, so which is a large portion of the working capital. So there may not be a very steep reduction in the working capital number of days.
Nikhil Gada
Got it, sir. And sir, just lastly, you mentioned about the 16.5 megawatt solar wind sort of plant that you are planning for captive. So what kind of cost-savings do we see from this?
Bajrang Bafna
So we will — we will basically be saving almost the same amount of capex what we incur, which is about INR17 crores per annum is what we will save out of this.
Rabindra Nayak
Okay. Got it, sir. Thank you.
Sunil Kumar Roongta
It’s under captive — group captive mechanism where the plant is owned by somebody else and we are the offtaker and we pay into the equity of the SPV, which in our case is going to be INR17 crores and our savings are roughly INR17 crores per annum.
Nikhil Gada
And this is realized generally at the moment of the capacities are started, right?
Sunil Kumar Roongta
Yeah, so that’s the way it is structured and the — there is a minimum return offtake and guarantees are also there assigned with it. So we expect the realization of the entire proceeds, the entire savings. The — currently, we are already having 10 megawatt, which is also giving us similar savings whatever we had projected that time. This time even the PLF is going to be even higher.
Nikhil Gada
Understood. Understood. Got it, sir. Thank you so much. All the best.
Operator
Thank you. The next question comes from the line of Lalit from Amrout Trading. Please go-ahead.
Lalit
Thank you for the opportunity, sir. Sir, my question is, do we take the complete solar power project?
Pradeep Kumar Kheruka
No, we just manufacture the glass and we sell to the people who manufacture the modules. So I’m sorry we are not engaged in solar power.
Lalit
Nothing like in further this forward integration and at this moment it’s not there but everything is open in business.
Pradeep Kumar Kheruka
You know that. Right now we are focusing on just expanding the production of glass.
Lalit
Why am I asking is that there is ample scope in project in India and the industry is also booming, so might be right. My question was, we can think of that also.
Pradeep Kumar Kheruka
Thank you so much. Thank you for your suggestion. We’ll definitely look into it.
Lalit
So who are our major customers who are buying the glasses from us? The major customer who are buying glasses from us.
Pradeep Kumar Kheruka
Ashok?
Ashok Kumar Jain
Yeah, yeah. So all the model manufacturers who are present in the country who are our customers actually and we also have exports, certain exports are there. So basically all large and small players buy glass from us and large players also have imports or they also buy from other competitors, producers, but basically we are present with all — generally all the customers.
Lalit
Can you name a few name.
Ashok Kumar Jain
You can take like say, Premier energies or Solar or the Tata Power or solar or ma many others are there.
Operator
Thank you, sir. Ladies and gentlemen, that brings us to the end-of-the question-and-answer session. I would now like to hand the conference over to the management for the closing comments.
Pradeep Kumar Kheruka
Thank you. I thank all the participants for all the questions that they have asked. I’m very happy to see a reasonably good turnout in the number of people who have joined this conference. I just would like to close by saying that we have gone through a rather challenging period in the last several — the last couple of years. But there are fair wins ahead and we can see with already from the 1st of January, there has been an improvement in our performance. And I’m sure that when we have our next earnings call-in May, it would be with better — with better results and all feel happy with your investments in our company. Thank you.
Operator
Thank you, sir. Ladies and gentlemen, on behalf of Axis Capital Limited, that concludes this conference. You may now disconnect your lines. Thank you.