Seeing strong demand since September, expect it to pick-up, says Borosil's Shreevar Kheruka

Borosil posted its Q3FY21 earnings, profits are up 20 percent and margins have also expanded for the company. Shreevar Kheruka, MD and CEO of Borosil, discussed the earnings and demand trends.

“We have been surprised with the V-shaped recovery in demand that we have seen post the lockdown. As any other company, we had done a lot of cost cutting through the lockdown and some of those costs which have been cut will probably stay on forever – that is aiding the margin improvement,” he said.

In terms of demand, he said, “We have basically been seeing very strong demand since September. In general we see strong pick-up in demand there.”

On revenues and margins, he added, “Furnace plant could probably do between Rs 180 crore and Rs 200 crore of revenues at full capacity, which is something that we are aiming at in the coming year. EBITDA margins should be between 28 percent and 32 percent. In Q3 we were at almost full capacity utilization for the quarter as well as the margins would be in that range. We are quite confident of that business and we have seen a strong bounce back.”

Speaking about pharma packaging, he mentioned, “Looking at all pharma packaging, injectable, the market size would be north of Rs 600-700 crore and growing. We feel there is a long room for growth. We have added lots of new customers in the last two-three years. In general that seems to be a growth area for us.”

Speaking about online sales, he said, “Couple of years back it was in 6-7 percent range, now it has scaled up substantially since then and we expect that to continue scaling up both on the market places such as Amazon and Flipkarts of the world and also with our direct to consumer website, myborosil.com.”