AIS is a joint venture between the Labroo family, Asahi Glass Co of Japan and Maruti Udyog. AIS today is the leading glass company in India, manufacturing automotive safety glass, float glass, architectural processed glass and glass products.

Quarterly Results

For the quarter ended December 2005 AIS has reported 18% fall in net sales to Rs 121.47 crore. Decline in sales was due to fall in sales of float glass division. This was on account of shut down of float glass plant at Taloja due to flooding caused by unrelenting and unprecedented rainfall in Maharashtra on 26th July, 2005. However the plant has resumed commercial production from 1st November, 2005.The operating profit margin of the company has improved by 400 basis points to 21.9% due to fall in other expenses and power and fuel cost. As a percentage of sales(net of stock adjustment) other expenses and power and fuel cost has fallen to 18.96% and 14.29% respectively.(Last year:22.17 and 15.41).However on account of surge in prices of raw material such as raw glass and oil, materials cost as a percentage of sales has increased to 34.31% as compared to 32.24 in corresponding quarter in previous year. Staff cost and stores & spares consumed has also increased to 7.44% and 6.1% respectively.(Last year:6.83% and 5.17%).Due to improvement in margins operating profit has increased marginally by 1% to Rs 26.62 crore.

During the quarter company had a negative other income of Rs 2.47 crore on account of foreign exchange loss amounting to Rs 2.63 crore. In corresponding quarter in previous year it had other income of Rs 7.66 crore which included foreign exchange gain of Rs 6.48 crore. Due to negative other income PBIDT decline by 29% to Rs 24.15 crore. Interest expenses has shoot up by 337% to Rs 2.71 crore. On account of capacity expansion carried out by the company provision for depreciation has increased by whooping 129% to Rs 15.72 crore. (Depreciation includes deferred revenue expenditure written off amounting to Rs 0.03 crore)PBT before EO stood at Rs 5.72 crore as compared to Rs 26.52 crore in corresponding quarter in previous year, down by 78%.

The Extraordinary expanses(EO) in quarter ended December 2005 amounted to Rs 2.9 crore represent expenditure on repairs, maintenance and utilities carried out for resumption of operations at AIS's float glass plant at Taloja, near Mumbai. Provision for tax, including deferred tax and newly added Fringe Benefit Tax (FBT), has fallen by 83% to Rs 0.35 crore. There was a prior period adjustment amounting to Rs 0.01 crore. Finally PAT for the quarter stood at Rs 2.48 crore posting a decline of 90%.

The promoters holding stood at 44.64% as on December 2005 as against 44.39% in the corresponding quarter in previous year.

Mr. Sanjay Labroo, Managing Director & CEO of AIS said, "The flooding and the resultant shut down of our float glass plant at Taloja, impacted AIS’s performance during the current quarter also. However, the plant is currently operating at its peak capacity since the resumption of commercial production from 1st November, 2005. Besides the flood losses, increase in prices of certain input costs like raw glass and oil impacted our profitability during the period. However, the operational performance during the quarter improved, after negating the impact of flood losses and rising input costs. We expect to improve our performance further in the coming quarters."

Nine-months results

For the nine months ended December 2005 AIS sales has remain flat at Rs 429.83 crore. Operating profit margin of the company has also decline from by 50 basis points to20.1%. This resulted from rise in materials cost, stores & spares cost and staff cost as a percentage of sale to 31.46%,6.36% and 7.3% respectively.(Last year:30.38%,5.5% and 6.57% ).However as a percentage of sales other expenses and power & fuel cost has fallen to 20.44% and14.2%.(Last year:21.19% and 15.5%). Due to fall in margins operating profit of the company has decline by 3% to Rs 86.45 crore.

During the period company had a negative other income of Rs 1.79 crore on account of foreign exchange loss amounting to Rs 3.36 crore. In corresponding period in previous year it had other incomes of Rs 3.52 crore which included foreign exchange gain of Rs 0.67 crore. Due to negative other income PBIDT has tremble down by 9% to Rs 84.66 crore. Interest expenses has increased by whopping 453% to Rs 7.21 crore. On account of capacity expansion carried out by the company provision for depreciation has shoot up by 49% to Rs 43.45 crore. (Depreciation includes deferred revenue expenditure written off amounting to Rs 0.09 crore).PBT before EO has decline by 45% to Rs 34 crore.

The EO of Rs. 12.09 crore represent expenditure on repairs, maintenance and utilities carried out for resumption of operations at float glass plant at Taloja, PBT after EO has decline by 65% to Rs 21.9 crore. Provision for tax, including deferred tax and FBT, has fallen by 48% to Rs 2.53 crore. There was a prior period adjustment amounting to Rs 0.06 crore. PAT for the period stood at Rs 19.31 crore as compared to Rs 57.24 crore reporting a decline of 66%.

Segment Results

Quarterly Results

For the quarter ended December 2005 the net sales/ income from operations from all segments has decline by 18% to Rs 124.55 crore.

Automotive Glass

For the quarter ended December 2005 the automotive glass business showed a marginal growth in revenue of 1% to Rs 82.83 crore as compared to quarter ended December 2004. PBITA margins for the segment fallen from 14.54% to 11.05%. As a result the PBITA have decline by 24% to Rs 9.15 crore. This segment contributes 67% of the total sales revenue for the company.

Float glass

For the quarter ended December 2005 the float glass business showed a fall in revenue by 45% to Rs 38.54 crore as compared to quarter ended December 2004 on account of shut down of float glass plant. PBITA margins for the segment fallen from 11.99% to 4.03%.Thus its profits has decline by whooping 81% to Rs 1.55 crore. This segment contributes 31% of the total sales revenue for the company.

Nine-months results

For the nine months ended December 2005 net sales/ income from operations has increased by 1% to Rs 447.05 crore.

Automotive Glass

For the period ended December 2005 the automotive glass segment has posted a growth in revenue of 12% to Rs 268.79 crore. PBITA margins for the segment fallen from 16.87 to 13.38%. As a result the PBITA have decline by 11% to Rs 35.95 crore. This segment contributes 60% of the total sales revenue for the company .

Float glass

For the period ended December 2005 the float glass business showed a fall in revenue by 15% to Rs 172.6 crore. PBITA margins for the segment fallen from 10.62 to 1.55%.On account of fall in margins and revenue PBDIT has decline by whooping 88% to Rs 21.68 crore. This segment contributes 39% of the total sales revenue for the company.

Recent Developments

The company has carried out expansion in all segments of its operations viz. Auto Glass, Float Glass, Architectural Processed Glass and other Value-added Glass. Expansion are progressing as per time and cost schedules.

The architectural processing unit set at its Auto Glass Plant at Chennai has started commercial operations. The architectural processing unit at AIS’s Auto Glass Plant at Rewari is expected to become operational shortly. With this expansion, there will be three architectural processing facilities to cater to its customers in the Western, Southern and Northern Regions of the country.

In order to tap huge market potential for the architectural processed glass and glass products AIS has added tempering and laminated capacities at our Auto Glass Plant at Chennai. The tempering unit has already commenced commercial production. The Chennai Plant will shortly have a capacity of one million laminated windshields and one million tempered car sets. The project work at AIS’s Integrated Glass Plant at Roorkee in Uttaranchal is progressing as per schedule. The Plant is expected to commence commercial production by December, 2006.

On 24^th January 2006 AIS closed at Rs 105.4 on BSE.