Piramal Glass turnover tops Rs.7 b

• Declares 18% dividend for FY19
• Highest-ever export turnover

Piramal Glass Ceylon PLC (PGC) said yesterday it has completed yet another challenging year with the highest-ever export turnover, PAT of Rs. 346 million and the Overall Turnover crossing the Rs. 7 billion mark.

The total revenue achieved for the year was Rs. 7.398 billion as against Rs. 6.816 billion in the previous year. 

The domestic revenue remained almost at par with previous year at Rs. 4.690 billion as against Rs. 4.680 billion in FY18.

Food and Liquor segments were mainly affected although a marginal improvement was noted in the fourth quarter particularly in the Liquor segment, mainly due to the seasonal demand. 

The fourth quarter, which has otherwise always been positive due to the festival season, could not pick up this year due to political instability in the country.

PGC said its export market kept its upward momentum with an increase of 27% from Rs. 2.136 billion in FY18 to Rs. 2.708 billion in FY19. “This growth is attributed to the new markets developed in many countries namely Malaysia, Africa, Vietnam and Myanmar,” the company said.

The Gross Profit during the year dropped from Rs. 1.422 billion in the previous year to Rs. 1.406 billion in FY19 resulting in a lowering of margins from 21% to 19%. This subsequently affected the Operating Profits which stood at Rs. 846 million as against Rs. 869 million of the previous year. 

The Gross Profit during the period under review was severely impacted by increase in raw material, packing material and transportation costs. The margins further declined due to increase in LPG cost by 35% and furnace oil increase by 15%. 

PGC said whilst the petrol and diesel prices have been linked to formulae price however the furnace oil price has not been addressed in a similar manner. 

“Our continuous appeals to the concerned authorities were unattended, thus heavily impacting the profitability and sustainability of exports. We still await the Government support to implement the linking of furnace oil price to global crude oil rates which is successfully implemented by all neighbouring countries,” the company pointed out.

The FY19 closed for PGC with a PAT of Rs. 346 million as against Rs. 344 million in FY18 However, following the consistent policy of a 50% payout ratio, the Board of Directors has proposed a dividend of 18%.