Asahi India Q4 Review – Building Glass Continue To Be Show Stopper: Dolat Capital

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Asahi India Glass Ltd. displayed a splendid performance in Q4 FY22. Revenue grew 14% QoQ to Rs 9.43 billion led by 15.6% growth in automotive and 12.8% in building glass segment.

Despite all challenges (like elevated raw material costs, high fuel and logistic expenses) operating margin remains strong at 25.7% led by healthy margin in the building glass division.

Ebit margin for automotive glass improved 73 basis points QoQ to 11.2% led by operating leverage, offset extended logistic and freight cost.

Despite sharp jump in fuel price, architecture glass margin expanded by 120 bps QoQ to 34.7% led by continued price hike and better mix.

Asahi India’s net debt has reduced to Rs 11 billion in from Rs 14 billion in FY21. We forecast 21% compound annual growth rate in earnings in FY22-24E, driven by a 14% increase in revenue and fall in interest cost.

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