Piramal Glass closes 1Q with revenue of Rs. 1.58 b

Wednesday, 7 August 2019 00:00 - - {{hitsCtrl.values.hits}}

Piramal Glass Ceylon PLC has announced its results for the 1st quarter of FY 2019-20 with Rs. 1,585 million of revenue and Rs. 21 million of profit after tax.

The quarter under review saw the completion of the capacity enhancement project, which was undertaken by the Company in F17. The company installed a new bottle production line increasing its total production lines from 5 to 6.

The production of the first quarter was negatively impacted, as two production lines had to be shut down for some period to facilitate the installation of the new production line. However the company is confident that this financial year end would see the highest-ever production at Piramal Glass Ceylon PLC.

This line has been installed mainly targeting the developed part of the world and has the flexibility of producing bottles in varied shapes and designs.

The total investment for this project is approximately Rs. 1 billion. This investment will facilitate the company to utilise its installed capacity to maximum.

Domestic sale stood at Rs. 1,193 million as against Rs. 1,016 million of the similar quarter of the previous year, reflecting a growth of 17%. It was encouraging to see an upward momentum in the domestic market after a long period of stagnation. Preference was given to the increased demand of the domestic market by deferring some part of the exports to the upcoming quarters.

Export sales for the quarter was Rs. 392 m as against Rs. 633 m of the similar period of the previous year. Even with the limited tonnage, the company launched several new developments. A blue water bottle and a liquor bottle were developed for the Australian market and the initial shipment took place during the quarter.

The management is confident that with the enhanced infrastructure that Piramal Ceylon would be able to enter niche markets segments with improved realisations and better margins. Presently the company is exporting to USA, Canada, New Zealand, Australia, India, Pakistan, Myanmar and several other markets. Gross profit for the period under review is Rs. 240 m as against Rs. 286 m in the corresponding period previous year. The profit before tax was Rs. 41 m as against Rs. 86 m of the previous year.