MUMBAI: Moser Baer India has posted a net loss of Rs 204.50 million for the quarter ended 31 December, 2007 as compared to a net profit of Rs 376.24 million for the quarter ended 31 December, 2006.

The company’s total income has increased 3.8 per cent from Rs 5150.25 million for the quarter ended 31 December, 2006 to Rs 5348.58 million for the quarter ended 31 December, 2007.

The company’s margins were adversely affected in the wake of the pricing pressures in the global optical media industry.

EBITDA for the quarter stood at Rs 1189.8 million compared to Rs 1633.8 million in Q3 of FY ’07. EBITDA margin stood at 22.2 per cent in Q3 of FY ’08, compared to 31.7 per cent in the corresponding period in FY ’07.

Cash profit stood at Rs 874.5 million for Q3 of FY ’08 and at Rs 3092.0 million for the YTD.

Moser Baer India executive director Ratul Puri said, “Presently, the optical media industry is facing challenging times. However, the fundamentals of the optical media business remain unchanged. Customer demand remains unabated and incremental growth will be driven by next-generation formats such as Blu-Ray in which we have technological leadership.”

“In the last quarter and the year so far, Moser Baer has pursued an aggressive strategy in order to grow volumes, consolidate the market and improve industry’s operating landscape in the long term. Also, as our new businesses achieve size and scale, they are expected to add significantly to consolidated revenues,” he added.

Moser Baer India group CFO Yogesh Mathur said, “Rupee appreciation continues to be a matter of concern for us and we have implemented short-term hedging strategies to mitigate the risk. The optical media business continues to generate gross cash to sustain our aggressive strategy. In the PV business, we had set up a unique line with world-class equipment, design and technology and aimed to establish new benchmarks of operating parameters. That objective has been effectively met within a short time. The business has now achieved operational scale and is increasingly being funded independently, thereby reducing dependence on MBIL. The Home Entertainment business has become profitable in less than a year of operations.”

Home Entertainment Business- Update & Outlook

The Home Entertainment business achieved breakeven in less than 12 months of operation. The division is on track to achieve revenues of $ 45-50 million for FY ’08. Increasing emphasis on new title releases should help give further impetus to the growth of the business. The recent example being launch of Jab We Met, which received overwhelming response from consumers.

Even as a pan-India distribution ramp up continues, the company’s aim is to acquire a significant number of new titles going forward. Selective projects on content development are moving towards revenue generation in the forthcoming quarters.

PV Business- Update & Outlook

In less than two quarters of operation, Moser Baer met its objectives of setting up a fully automated, highly efficient crystalline silicon line with 40MW of capacity. This initial line has undergone extensive trials and achieved stable yields of over 95 per cent; achieving global benchmarks in cell efficiencies. Capacity will be expanded to 80 MW as planned by the end of next quarter. The production of Solar Modules has also commenced and the production capacity is being expanded to 60 MW. Proprietary cell packaging has also been introduced. The Thin Film facility is nearing completion with pilot production expected by Q1 of FY’09.

The business has tied up significant customer orders and MoUs. The Indian opportunity remains a significant growth driver. Additionally, the announced feed-in tariff subsidy of Rs 12/unit by Government of India to solar power plants will further incentivise the growth of solar installations in the country. Starting from a proposed 5 MW grid connected solar farm in Rajasthan. MBPV aims to garner a significant share of the initial 50 MW capacity eligible for subsidy at present.

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