The Hindu Business Line : Moser Baer Q3 loss rises on higher interest costs

New Delhi, Feb. 2 Moser Baer India has posted a net loss of Rs 25.65 crore for the quarter ended December 2008, against Rs 20.4 crore loss in the year-ago period, on the back of an increased interest charges.

Its standalone total income rose almost 25 per cent year-on-year to Rs 655.24 crore in October to December quarter FY09.

“Market dynamics and the environment in which the optical media business has been operating have improved significantly with input prices softening. We will continue to reap the benefit of the fall in prices of commodity-based raw materials and fuel in the next couple of quarters. With high definition drive prices falling, our focus on the blu-ray technology is starting to pay off,” Mr Ratul Puri, Executive Director, Moser Baer India, said.

“However, we need to watch the emerging global economic environment,” he added. According to Mr Yogesh Mathur, Group Chief Financial Officer, the reduction in inventory build-up was a “good sign”, even as capex remained judicious.

Industry variables

“While the global meltdown has impacted solar markets worldwide, key industry variables continue to be strong. Global energy demand is rising and solar costs are expected to start achieving grid parity in the next couple of years,” Mr Mathur said.

Commenting on the optical media business, the company said the capacity is now consolidated and this would help the industry reach demand-supply equilibrium, in the long term. It further said the share of high value-added media registered a 35 per cent quarter-on-quarter growth.

Solar photovoltaic

On the solar photovoltaic sides of business, the company said the third quarter threw up “challenges”.

“Demand for solar panels was subdued due to global solar farm projects suffering delays in achieving financial closure.

“However, the industry is well poised to recover and grow rapidly once the pressure on liquidity has eased off,” it said.

The company said a 40-MW capacity thin film line was readied for production at Moser Baer Photovoltaic’s Greater Noida plant; while work on another 65MW capacity tandem junction thin film line, also in Greater Noida, is on track with facility construction completed ahead of schedule.