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Asahi India Glass Ltd. Q2 FY23 Ebitda margin declined at 22.1% (260 basis points QoQ).
Mainly due to gross margin contraction of 410 bps, offset by power and fuel costs and a 65 bps contraction, but 50 bps QoQ growth.
Roughly, currency depreciation; Gross margin compression resulted from a mix of negatives, including higher raw material costs and limited scope for price action.
While Asahi India Glass saw a hit of 200 bps QoQ in both the auto and architectural segments compared to the last rolling average.
Auto margin fell at ~34% vs. 10% for the architectural segment[in Q1 FY23]. The company has done a commendable job in maintaining the architectural segment margin above 30% amid several headwinds.
However, fears of increased imports as container costs decline could add to price pressures and ultimately margins.
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