Quarterly Results

For the quarter ended June 2006 AIS has reported 12 % increase in net sales to Rs 172.79 crore.

As a percentage of sales (net of stock adjustment) cost of stores & spares consumed has fallen to 5.72% as compared to 7% in corresponding quarter in previous year. Also, as a percentage of sales other expenses has declined to 19.24% as compared to 19.49% in last year. However as a percentage of sales materials cost, power & fuel and staff cost has increased to 33.6%, 17.15% and 6.86% respectively. (Last year: 30.41%, 15.8% and 6.77%). Thus, operating profit margin of the company has fallen by 210 basis points to 18.7%. Due to fall in margins operating profit of the company has remained almost flat at Rs 32.29 crore.

There was a negative other income of Rs 4.15 crore as compared to a positive other income of Rs 1.63 crore in corresponding quarter in previous year. (Other income includes foreign exchange loos of Rs 5.01 crore. In corresponding quarter in previous year company had a foreign exchange gain of Rs 0.56 crore.) Due to negative other income PBIDT decline by 17% to Rs 28.14 crore. Interest expenses has shoot up by 173% to Rs 6.27 crore on account of capacity expansion carried out by the company. Provisions for depreciation of the company have increased by 4% to Rs 13.79 crore. PBT have reported a decline of 55% to Rs 8.08 crore.

Provision for tax has increased by 58% to Rs 2.78 crore. In the quarter ended June 2006 there was a prior period adjustment of Rs 0.32 crore in the corresponding quarter in previous year company had a prior period adjustment of Rs 0.01 crore. Finally, PAT of the company stood at Rs 4.98 crore posting a fall of 70%.

The non-promoters holding stood at 44.82% as on June 2006 as against 44.46% in the corresponding quarter in previous year.

Speaking on the occasion, Mr. Sanjay Labroo, Managing Director & CEO said, "The results are on expected lines. Operating margins continue to remain under pressure due to higher costs of key inputs, led by oil. Net Profit has declined due to adverse fluctuation in foreign exchange. We expect to improve top line growth in the remaining quarters by increasing scales and sweating our assets. AIS's Integrated Glass Plant at Roorkee will commence production by December, 2006. This will be a big impetus to our value chain strategy and contribute to top line and bottom line growth."

Yearly results

For the year ended March 2006 AIS sales has remain flat at Rs 587.67 crore. Operating profit margin of the company has also decline from by 30 basis points to 20.3%. This resulted from rise in materials cost, stores & spares cost and staff cost as a percentage of sale to 32.45%, 5.89% and 7.22% respectively. (Last year: 29.95%, 5.53% and 6.59% ).However as a percentage of sales other expenses and power & fuel cost has fallen to 20.33% and 14.18%.(Last year: 22.01% and 14.98%). Due to fall in margins operating profit of the company has decline by 2% to Rs 119.27crore.

Other income has decline whooping 81% to Rs 1.41 crore (Other income for the year includes exchange rate loss of Rs 2.24 crore.) Due to sharp fall in other income PBIDT decline by 6% to Rs 120.68 crore.

Interest expenses have increased by whopping 243% to Rs10.83 crore. Provision for depreciation of the company has increased by 15% to Rs 46.5 crore. (Depreciation includes deferred revenue expenditure written off amounting to Rs 0.12 crore in the year ended March 2005 and year ended March 2006) The Company during the year has change in depreciation policy in the Auto Glass SBU. The change in depreciation policy has resulted in a lower depreciation charge for the year by Rs. 14.76 crore. PBT before EO has decline by 26% to Rs 63.35 crore.

In the year ended March 2006 Company has written back depreciation of earlier years amounting to Rs. 40.08 crore. Company had also reversed impairment loss amounting to Rs 0.38 crore. Company had non-recurring expenses of Rs 12.44 crore. Thus Company during the year had a net extraordinary income of Rs 28.01crore. Last year there was no extraordinary item.

Due to extraordinary income PBT after EO has posted a growth of 7% to Rs 91.36 crore. Provision for tax has fallen by 26% to Rs 4.97 crore. In the year ended March 2006 there was a prior period adjustment amounting to Rs 0.13 crore as compared to Rs 0.36 crore in last year. (Including prior period tax Rs 0.08). Finally, PAT of the company stood at Rs 86.26 crore as compared to Rs 78.2 crore reporting a growth of 10%.

Automotive Glass

For the quarter ended June 2006 the automotive glass business showed a growth in revenue of 14% to Rs 106.72 crore. PBIT margins for the segment have fallen to 13.31% from 15.17%. As a result the PBIT of the division has remained flat at Rs 14.21 crore. This segment contributes 60% of the total sales revenue and 75% of total PBIT for the company.

Float glass

For the quarter ended June 2006 the float glass business showed a fall in revenue of 9% to Rs 62.2 crore. PBIT margins for the segment fallen to 8.91% from 9.96%. Due to fall in revenue and margins PBIT has decline by 19% to Rs 5.54 crore. This segment contributes 35% of the total sales revenue and 29% of total PBIT for the company.

Automotive Glass

For the year ended March 2006 the automotive glass segment has posted a growth in revenue of 13% to Rs 370.59 crore. PBIT margins for the segment improved from 16.33% to 27.29% due to change in depreciation policy. As a result the PBIT have zoomed by 88% to Rs 101.12 crore. This segment contributes 61% of the total sales revenue for the company.

Float glass

For the year ended March 2006 the float glass business showed a fall in revenue by 18% to Rs 227.9 crore on account of shut down of float glass plant at Taloja. PBIT margins for the segment fallen from 11.95% to 4.57%. On account of fall in margins and revenue PBIT has decline by whooping 69% to Rs 10.41 crore. This segment contributes 37% of the total sales revenue for the company.