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Dolat Capital Report
Asahi India Glass Ltd. posted inline numbers in Q1. Revenue de-grew by 68% YoY to Rs 2.28 billion (versus estimate Rs 2.11 billion) led by 53% YoY fall in architecture glass division to R 1.37 billion, and 80% YoY de-growth in automotive glass division to Rs 839 million due to lockdown.
Ebitda loss stood at Rs 310 million (versus estimate Rs 83 million) due to negative operating leverage and one off Rs 300 million for furnace maintenance cost.
We expect the company would be a key beneficiary of revival in volume of automotive and architectural glass segment from Q2. Moreover, strong traction in aftermarket business will also aid profitability.
In Automotive glass business, Asahi India Glass would be the key beneficiary of uptick in volume of Maruti Suzuki India Ltd. (current share of business from MSIL is above 90%).
Architectural glass business has also shown strong recovery from July onward, benefiting from reduced import in India from Asian countries. Prices are also firm due to supply constraint.
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