Bears Hug Moser Baer

Moser Baer reported 4Q loss of ~Rs720m (standalone) compared to ~Rs400m profit in 4QFY07. For FY08, Moser reported standalone losses of Rs800m. Optical media outlook continues to be challenging with another sharp ASP fall this quarter. New businesses are still in investment mode and do not contribute much.

Optical Media is going through severe pricing pressures due to a difficult supply-demand scenario with the dispute on royalty issue between Philips and the large CDR producers. Management admitted that near-term challenges are likely to continue.

PV business had $20m revenue in 4Q. The 40 MW crystalline silicon line is being expanded to 80 MW soon and production capacity of solar modules has been expanded to 40 MW.