The ratings reflect the healthy business profile marked by AIS's established market position in the auto and architectural glass segments and established clientele, strong operating efficiency, comfortable financial profile, and the extensive industry experience of the promoters including technical and business support from AGC Inc.

These strengths are partially offset by susceptibility to inherent cyclicality in the end-user industry along with project risk associated with large proposed capital expenditure (capex) plan and volatility in fuel prices.

Financial risk profile remains healthy in fiscal 2022 supported by adequate liquidity in the form of unutilised bank lines of over Rs 250 crore and comfortable capital structure. Debt protection metrics to remain comfortable in the medium term with increase in profitability despite large proposed capital expenditure (capex) to be incurred over fiscals 2023-2025.

Asahi India Glass is India's largest integrated glass solutions company and a dominant player both in the automotive and architectural glass segments. It commands over 74% market share in the Indian passenger car glass market.

The company's consolidated net profit rose 35.60% to Rs 100.22 crore on a 10.41% increase in sales to Rs 824.75 crore in Q3 FY22 over Q3 FY21.

The scrip was currently trading 4.10% lower at Rs 460.45 on the BSE.