Piramal Glass Ceylon PLC has concluded the 1st quarter of FY2014 with Rs. 1,223 million in revenue and Rs. 358 million in PAT, which included the profit from the sale of their Ratmalana land of Rs. 297 million.
The sales of glass products during the first three months of FY14 was Rs. 1,223 million, which was 6% less than that of the same period last year, i.e. Rs. 1,292 million.
The domestic sale stood at Rs. 916 million as against Rs. 932 of the similar quarter of the previous year. The sales were mainly affected by the low demand in the liquor and aerated water segment. The export market sale stood at Rs. 307 million and saw a decrease of 15% as against the Rs. 360 million received in the similar quarter of the previous year.
Piramal Glass Ceylon previously had its export market hub centralised around India. Yet presently with the devaluation of the Indian rupee, exports to India have become quite competitive thus, PGC has started a more focused market development in Australia, New Zealand, Mauritius etc. “Several new bottles were developed during this quarter for the Australian and New Zealand Market and we hope the results of same would be seen during the latter part of this year,” said Piramal Glass Managing Director and CEO Sanjay Tiwari.
The gross profit was at 22% as against the 28% achieved during the similar quarter of the previous year. The main contributor towards this drop was the high electricity tariff increase which affected the production cost directly and indirectly due to increased raw material costs, packing material etc.
The quarter-end PBT was Rs. 370 million, which included Rs. 297 million of the land sale profit. Thus, the operational PBT stood at Rs. 73 million as against the PBT of Rs. 143 million in Q1 of FY13. The transaction with regards to the part sale of the Ratmalana land was concluded during the quarter under review. The sale value stood at Rs. 355 million and the Profit gained from this deal was Rs. 297 million. These funds were used to settle part of the long term loans.