Asahi India posts quarterly loss as input costs rise

NEW DELHI, May 6 (Reuters) - Asahi India Glass (AISG.BO: Quote, Profile, Research) posted a quarterly loss and a sharp fall in annual profits as input costs outstripped sales, but it expects financials to improve in the current fiscal on more higher-margin products.

The firm, a vendor to building firms and top automakers like Maruti Suzuki India Ltd (MRTI.BO: Quote, Profile, Research), Tata Motors (TAMO.BO: Quote, Profile, Research), has been affected by rising energy and soda ash costs, at a time when cheaper imports have limited product price increases.

"The rising input costs of power and fuel, soda ash continued to have an impact on operations and resultant profitability," Chief Executive Officer Sanjay Labroo said in a statement released on Tuesday.

During the January-March quarter, Asahi had a loss of 120.6 million rupees, compared with a net profit of 84.8 million rupees a year ago on a consolidated basis.

Net sales for the quarter rose 15.1 percent to 2.65 billion rupees.

For the year to March 31, the joint venture between the Labroo family, Japan's Asahi Glass Co. Ltd. (5201.T: Quote, Profile, Research) and Maruti posted an 80 percent fall in net profits to 84.3 million rupees, on a consolidated basis.

Labroo said prices of finished goods could improve in 2008/09 on declining imports from China.

"Significant emphasis in 08-09 will be on value-added products having better margins," he added.

Shares of the firm closed marginally down at 61.25 rupees, in line with a weak Mumbai market, ahead of the announcement. (Reporting by Rakesh Sharma; Editing by Prem Udayabhanu)