The interest expense for the period increased by 490% at Rs 2.3 crore and depreciation expense increased by 18% at Rs 13.31 crore. The PBT was up 23% at Rs 18.15 crore. Provision for tax for the period increased by 54% at Rs 1.76 crore. Thus PAT was up 20% at Rs 16.39 crore.

Annual Results

For the year-end March 2005, AIGL has managed to grow its volumes but margins have fallen down. As a result, the 20% rise in sales to Rs 588.67 crore saw its OPM falling from 23.9% to 20.6% leading to a fall of 330 basis. The operating profit grew by 4% at Rs 121.45 crore. The other income declined by 50 basis points at 7.41 crores. Other income dipped by 50% to Rs 7.41 crore The current year’s other income did not have any exchange rate gain as compared to exchange rate gain amount of Rs. 9.65 crore in the corresponding period of previous year.

The interest expense for the year increased by 31% at 3.16 crores. The depreciation expense declined by 21% at 40.43 crore as a result of which Profit before tax stood at 85.27 crore up 9%. The provision for tax increased by 8% at Rs 78.49 crore. Thus PAT finally was up 8% at Rs 78.21 crore.

Automotive glass

For the quarter ended june 2005 Automotive segment which contributes 57% of the total revenue had a 26% rise in the revenues at Rs 72.98 crore. The PBIT margins for the division declined from 19.5% to 15.3%. PBIT was down 1% at Rs 14.14 crore. Capital employed for the quarter was up 93% at Rs 282.61 crore.

Float Glass

Float glass contributes 43% of the total revenue posted an 11% increase in revenue at Rs 68.81 crore. The PBIT margins for this division declined by 100 bps from 10.9% to 9.9%. The PBIT increased by just 1% at Rs 6.83 crore. Capital employed for the quarter was up 22% at Rs 350.58 crore.

Recent Developments

Citigroup will provide a loan of $65 million to Asahi India Glass for building its second float glass plant in Uttaranchal at a cost of $140 million. Japan's Nippon Export and Investment Insurance (NEXI) will partially cover the risks of the deal, the first ever to an Indian company. Asahi India will invest a total of $140 million or Rs 600 crore to build its second plant in roorkee to meet the demands of India's booming construction and cars. The investment is expected to boost the joint venture's daily production from 500 tonnes to 700 tonnes

Asahi India Glass (AIGL) is a joint venture between Labroo family, Asahi Glass Co, Japan, and Maruti Udyog. It began operations in 1987. The company has two automotive glass plants, located at Rewari (Haryana) and Chennai. The Rewari plant has a capacity of 1.20 million car sets, while the Chennai plant, with an initial capacity of 500000 laminated windshield, has been set up in a modular fashion, which will eventually have a total capacity of 1.5 million laminated windshields and 1 million tempered car sets.

The Chennai plant, with an initial capacity of 500,000 laminated windshield, has been set up in a modular fashion, which will eventually have a total capacity of 1.5 million laminated windshields and 1 million tempered car sets. Phase I has been commission on time and cost. The new plant will cater to existing customers in South India. These include Hyundai Motors, Toyota Kirloskar, Ford India, Hindustan Motors (Lancer Project), Volvo India, etc. Besides, the Company will be seeking to address some export markets using the new facility. AIS have two existing plants. The first, an automotive safety glass plant is based in Rewari, Haryana and has a capacity of 1.20 million car sets. AIS’s second plant, a float glass plant is based in Taloja, near Mumbai, Maharastra. The float glass plant, which is the third largest in the country, has a capacity of 500 MT/day.

AIS has also announced its plans to set up its fourth plant, which would be single largest integrated glass plant in the country, with manufacturing facilities for value added glass and glass products, including reflective glass, mirror, automotive safety glass and processed glass, and float glass. This plant is being set up in Roorkee in the State of Uttaranchal at an estimated capex of Rs. 600 crores and will be operational by end 2006.

Further the architectural processing glass unit, coming up at Taloja near Mumbai, will commence production from March, 2005. Also it has commenced project-related activities for the integrated glass plant, coming up at Roorkee. The integrated glass plant will be the single largest integrated glass plant in India, with manufacturing facilities for value added glass and glass products, including reflective glass, processed glass, mirror, automotive safety glass and float glass. The plant is likely to become operational from Dec. 2006.

During the quarter, revenues from automotive unit grew by 10% to Rs 89.84 crore and it accounted for 54% of the total revenue. PBIT for the same fell by 8% to Rs 13.57 crore and accounted for 53% of the total PBIT. Revenues from float glass unit grew by 40% to Rs 75.84 crore (46% of total). PBIT margins of automotive segment fell by 300 basis points to 15.1% while margins of Float glass rose by 880 basis points to 15.6%. PBIT grew by 221% to Rs 11.86 crore (46% of total).

For the year ended March 2005, automotive unit grew by 18% to Rs 329.01 crore and it accounted for 54% of the total revenue. PBIT margins for the same declined 110 basis points to 16.4 % accounting for 60% of the total PBIT. Revenues from float glass unit grew by 19% to Rs 279.23 crore (46% of total). PBIT increased by 64% to Rs 33.45 crore . PBIT margins of float glass rose by 330 basis points to 12%.

Currently the stock is trading around Rs 177on BSE.