Piramal Glass Ceylon continues upward momentum in 1Q

• Revenue at Rs. 1,543 million and PAT at Rs. 147 million

Piramal Glass Ceylon PLC has announced its results for the 1st Quarter of F2016 with Rs. 1,523 million of revenue and Rs. 147 million of PAT; showing a positive growth in Operating Profit and at PAT level when compared with the profitability of F2014. 

The total revenue generated during the quarter showed an overall growth of 22% as against the F 2014 Turnover of Rs. 1,245 million.

The positive momentum achieved in the Domestic market last year continued this year too with the quarterly growth depicting 24% as against the F15 Q1. The Domestic sale of F 16 Q1 was 1,233 as against Rs. 994 million of previous year Q1 sale. The main contributors towards the growth were the Food and Beverage sector.

The Virgin Coconut oil exports from Sri Lanka have shown growth and much potential in the international market during the past year. The growth in PGC’s Food sector bottles is a result of the increased supply of packaging material to this industry. 

The investment the company intends to do early next year in improved infrastructure and technological enhancement would create more flexibility and variety to the jar range in the product portfolio which would further facilitate the virgin oil industry.

The Export market sale was Rs. 290 million as against Rs. 251 million of the previous year, displaying an increase of 15%. The company had to curtail some exports to facilitate the domestic market requirement. Thus the real potential of the international market was not exploited to its fullest. The company concentrated on the high value niche products and reduced on the mass market volumes. 

The Gross Profit saw a marginal increase from 21% in Q1 F 2015 to 22% in Q1 F2016, whilst operating profit improved from 11% in 1st Quarter of F2015 to 13% during the quarter under review.

The company was able to achieve the above performance level as it took much effort to keep the costs under control by concentrating on the internal efficiencies and productivity norms. The company continued its upward momentum in productivity, by bettering the production norms and standards. These production milestones were possible due to the high concentration the management has put on the initiative of the Manufacturing Excellence program it has established in the plant. 

The much awaited furnace oil price reduction did not happen during the quarter under review. In 2012 furnace oil rate which was Rs. 50 was increased by 80% to Rs. 90. At this time the crude oil price was in the range of $ 110-$ 120. Since then the crude oil barrel has reduced and presently is close to $ 60. Yet the furnace oil remains at Rs. 80, whilst in the neighbouring country India the furnace oil rate is Rs. 55-Rs. 60 (INR 25-28). Of the total furnace oil generated in Sri Lanka only 10% is consumed by the local industry and the balance 90% is exported. The price of the exports is 30% lower than what is charged to the local consumer. This state of affairs has affected our competitiveness in the international market as well. 

“Though many appeals have been made regards the price disparity by PGC and via the industry, we are yet to see a positive response from the relevant authorities. We are expectant and hopeful that this aspect would be looked at seriously and that justice would be done to the industry,” said MD and CEO of PGC.