Key Highlights

• Auto division sales of the company were up 13% to Rs 370.59 crore.
• Float division’s sales were down 18% to Rs 227.90 crore due to shut down of Taloja Plant for over 3 months on account of floods.
• The company had to spent Rs 10 crore direct expenses on Taloja plant.
• Loss of operating profit due to shut down is estimated at Rs 26.70 crore.
• The company has completed the projects scheduled in the financial year 2005-06 on time. It has added capacities for tempered glass and laminated windshields at the Auto Glass Plant at Chennai.
• The Architectural Processing Units at the Auto Glass Plants in Chennai and Rewari became operational in January 2006 and March 2006.
• The project work at the Integrated Glass Plant at Roorkee in the State of Uttaranchal is proceeding as per schedule. The Plant will become operational by December 2006.
• The Roorkee plant will provide excise and tax incentives to the company.
• However after completion of expansion projects capacity of domestic glass industry is likely to exceed the domestic demand. Demand supply mismatch may continue for two years thereafter.
• AIS have made a change in the method of depreciation for its Auto SBU from WDV to SLM. Chance in method of depreciation has increased net profit of the company by Rs 45.61 crore.
• The company has market share of 85% in OEM market
• In FY 2007 Company expects revenue growth of 25% on account of lower base in FY 2006 due to shut down of float glass plant at Taloja and commencement Rewari plant in December 2006.
• Operating profit margins of the company are likely to remain under pressure due to fall in prices especially for float glass and increase in input costs.
• The rise in fuel prices has impacted operating profit of the company by Rs 25 crore in FY 2006.
• Post commissioning of the scheduled expansions, company expects revenues to rise over 100% in FY 08 as compared to FY 06.
• In March 2008 debt equity ratio of the company is likely to be 3:1.
• Combine interest and depreciation after completion of expansion is likely to be Rs 70 crore.