Why Did Borosil’s Net Profit Plunge by Nearly 69% in Q4?
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Synopsis
Borosil Limited's financial woes deepen as their net profit plunges by 68.58% in Q4 FY25, reflecting broader industry challenges. Explore the factors contributing to this significant decline and what it means for the future of this glassware giant.
Key Takeaways
- Borosil Limited experienced a 68.58% drop in net profit in Q4 FY25.
- Revenue declined by 20.09% compared to the previous quarter.
- Total income dropped by 23.12%.
- Expenses were reduced by approximately 16.74%.
- Employee benefits expenses rose by 23.63%.
Mumbai, May 19 (NationPress) - The glassware company Borosil Limited disclosed a staggering 68.58% drop in its net profit, reporting a mere Rs 11.14 crore for the fourth quarter (Q4 FY25), compared to Rs 35.47 crore in the preceding quarter (Q3 FY25).
The decline in profit attributable to the owners mirrored this steep downturn during the same timeframe.
This profit slump coincides with a marked decrease in revenue. In Q4, Borosil’s revenue from operations totaled Rs 270.18 crore, reflecting a nearly 20.09% decline from Rs 338.1 crore in Q3.
Furthermore, the company’s overall income saw a reduction of around 23.12%, dropping to Rs 272.49 crore in Q4 from Rs 354.45 crore in the previous quarter.
On the expense side, Borosil successfully reduced total expenses by approximately 16.74% in Q4, decreasing from Rs 306.93 crore in Q3 to Rs 255.55 crore.
The cost of materials consumed also experienced a decline of about 26.61% during this period.
However, purchases of stock-in-trade surged significantly by 39.42%, rising to Rs 124.35 crore in Q4 from Rs 89.19 crore in the previous quarter.
A notable shift was observed in the company’s inventories of work-in-progress and finished goods, which transitioned from a profit of Rs 33.62 crore in Q3 to a loss of Rs 41.97 crore in Q4.
Meanwhile, employee benefits expenses increased by 23.63%, reaching Rs 33.75 crore from Rs 27.3 crore.
Borosil Limited, headquartered in Mumbai, is a prominent manufacturer of glassware with operations extending beyond India to the United States and the Netherlands.
The company provides a diverse array of products, including laboratory glassware, instruments, disposable plastics, liquid handling systems, and explosion-proof lighting glassware.
These offerings serve not only the education sector but also various industries such as microbiology, biotechnology, photoprinting, process systems, and lighting.
Point of View
I view Borosil's financial decline as a reflection of broader economic challenges. It's essential to analyze how such downturns not only impact the company but also the sectors that rely on their products. Our commitment is to deliver informative and unbiased insights to keep our readers well-informed in these evolving times.
NationPress
08/06/2025
Frequently Asked Questions
What caused Borosil's profit drop in Q4?
Borosil's profit decline was primarily due to a significant reduction in revenue, which fell by 20.09% in Q4 FY25.
How did Borosil's expenses change in Q4?
Despite a drop in revenue, Borosil managed to reduce its total expenses by approximately 16.74% in Q4.
What products does Borosil manufacture?
Borosil produces a variety of glassware products, including laboratory glassware, disposable plastics, and explosion-proof lighting.
Where is Borosil located?
Borosil Limited is headquartered in Mumbai, India, and also operates in the United States and the Netherlands.
What industries does Borosil cater to?
Borosil serves various industries, including microbiology, biotechnology, and the education sector.
