Highlights of the call

• For the quarter ended December 2009, the company sales has grown by just 2% to Rs 357.74 crore while net profit has grown by 7% to Rs 33.06 crore. The net sales for the nine months has grown by just 2% to Rs 990.55 crore while net profit has grown by 62% to Rs 130.82 crore.

• The company's margin has improved on back of cost control measures and fall in energy cost.

• The company will be able to maintain its EBIDTA margin at around 22% to 23% if the crude oil price remains in the range of $ 80 to $ 90 per barrel.

• The company's 65% of volume is from liquor business, 14% from pharmaceutical & food segment each and 7% from soft drink & cosmetic bottle segment.

• The company has manufacturing operations spread over six centres Rishra, Bahadurgarh, Rishikesh, Puducherry, Nashik and Neemrana and its products are available in more than 20 countries.

• The company has 1 million tonne of glass capacity per annum.

• The company has 65% market share in container glass.

• The company is seriously pursuing acquisition in foreign soil in the Container Glass business.

• The company has planned a capex of Rs 700 crore for next 2 years, which will be largely devoted for setting up a green filed project in Andhra Pradesh (AP) state and rest for acquisition.

• The company's AP state project will be of the capacity of around 164000 metric tonne per annum.

• The company has debt of around Rs 500 crore. The average cost of the debt is around 9%.

• The company's debt:equity ratio stands at 0.5.

• The total size of the industry is 18 lakh tonnes of which 15 lakh tonne is organized one. In value term, the industry is of the size of Rs 2800 to 3000 crore.

• The container glass industry is growing at the rate of more than 8% per annum.

• The company has recently diversified in the business of Float Glass through a separate company called - HNG Float Glass Ltd. (HNGFL) for manufacture of Float Glass (600 TPD) at Hallol (near Vadodara), Gujarat at a Capital outlay of Rs 602 crore, funded in Debt : Equity of 352 : 250 crore with Equity and Debt participation from IFC, Washington and DEG, Germany. Almost 40% of Equity of HNGFL is to be owned by the company.

• As on date, the promoters of the company hold close to about 74% shares in the company. 20% of total equity is held in the form of treasury stock that came to be acquired by Hindusthan National Glass in the process of amalgamation of some other companies.