Speaking on the occasion, Mr. Sanjay Labroo, MD & C.E.O., AIS said – "The results are a reflection of the improved operational performance of AIS across all levels. The Indian economy continued its momentum during the last quarter and the automotive and construction sectors showed good growth resulting in a positive impact on our performance. The float glass segment of AIS performed particularly well and is now inching closer to its potential performance. Sales of our high quality value-added glass products continued to increase and are appreciated by our customers. We continue to work on offering a variety of high quality float glass products to our customers. The automotive segment has done well to keep up with the burgeoning demand from the automotive sector. Our brown-field expansions are also progressing as scheduled and we expect to commission a laminated glass expansion in the fourth quarter of 2010-11. Overall, I am satisfied that the several operational improvements undertaken recently are being reflected in the financial statements of AIS."

The company's consolidated operating income grew by 22% to Rs 398.26 crore on growth in all segments especially the automotive glass. The automotive glass sales grew by 22% to Rs 209.67 crore while the float glass sales rose by 8% to Rs 175.42 crore. The automotive and float glass together contribute 93% to total sales. The balance being met by others segment that grew by impressive 61% to Rs 29.16 crore. Fall in operating profit margin (OPM) by 190 bps to 17.5% limited the growth in operating profit to 10% to Rs 69.84 crore. In terms of cost, as % to sales net stock adjusted, the raw material cost grew by 430 bps to 32%. Also the cost of traded goods and staff cost grew by 100 bps to 1% and 20 bps to 7% respectively. Only the other expenditure and power & fuel cost fell by 100 bps to 24% and 160 bps to 19% respectively.

The PBIT margin of automotive glass fell by 780 bps to 9% pulling down its PBIT by 33% to Rs 19.75 crore. On the other hand, the PBIT margin of floating glass surged by 1030 bps to 11% boosting its PBIT to Rs 19.49 crore from Rs 1.30 crore in Sep 09 quarter.

The company recorded PBT of Rs 7.87 crore against LBT of Rs 1.68 crore in Sep 09 quarter on fall in interest cost and depreciation cost. The interest cost declined by 4% to Rs 31.69 crore while the depreciation cost reduced by 7%to Rs 30.53 crore. However accounting 750 bps increase in effective tax rate and minority interest, the net profit stood at Rs 5.22 crore against net loss of Rs 1.16 crore.

Half Year Performance

In H1 FY 11, the consolidated topline grew by 16% to Rs 738.13 crore with 23% growth in automotive glass sales and 7% growth in float glass sales. Fall in OPM by 20 bps to 18.3% constrained the operating profit growth to 14% to Rs 134.76 crore. Nevertheless, decline in interest cost (by 6% to Rs 62.71 crore) and depreciation cost (by 7% to Rs 60.79 crore) enabled PBT of Rs 11.63 crore against LBT of Rs 13.73 crore in H1FY10. Further with 320 bps fall in effective tax rate and accounting share in associate profit and minority interest, the net profit settled at Rs 8 crore against net loss of Rs 8.97 crore in H1 FY 10.

The promoters' share in the total shareholding is unchanged at 55.20% in Sep 2010 quarter. However the share of promoters' pledged shares to the total has decreased to 11.84% in Sep 2010 quarter from 12.19% in June 2010 quarter.

Currently the scrip is trading at Rs 106 on BSE.