Piramal Glass ups 1Q net profit by 13% to Rs. 86 m

Wednesday, 16 July 2014 00:00 -     - {{hitsCtrl.values.hits}}

Piramal Glass Ceylon PLC has announced its results for the first quarter of FY2015, with Rs. 1,245 million of revenue and Rs. 86 million of PAT showing a growth of 13% at operating profit level and 41% growth at PAT level, when compared with the profitability of FY2013 (excluding profit from sale of land). The total revenue generated during the quarter under review stood at as Rs. 1,245 million as against Rs. 1,233 million, depicting a 2% overall growth. “We were happy to note that the domestic sales in Q1 showed positive signs with a growth of 8%, by achieving Rs. 994 million during the current quarter as against Rs. 916 million of the previous year’s quarter,” said Piramal Glass Ceylon Managing Director Sanjay Tiwari. Export market sales stood at Rs. 251 million as against Rs. 307 million of the previous year, a decline of 18%. Exports to the Indian market, which were affected during the past few quarters due to the currency fluctuation in India have recovered to some extent, and the company was able to achieve its expected sales in India. The gross profit saw a marginal decrease from 22% in Q1 F2014 to 21% in Q1 F2015, while the operating profit increased from 10% in first quarter of F2014 to 11% during the quarter under review. The company saw a substantial increase in direct and indirect costs during the quarter. The main increases were seen in raw material and packing material costs which have directly impacted the production cost and gross profit margins. The finance cost showed a 41% reduction from Rs. 54 million in the first quarter of F2014 to Rs. 32 million in the first quarter of F2015 due to a decline of interest rates and as most of the long term loan debts are now settled. This has been a main contributor towards the company achieving a PAT of Rs. 86 million during this quarter as against Rs. 61 million (Rs. 358 million including land sale profit of Rs. 297 million) of the previous year’s corresponding quarter, depicting 41% growth. Piramal Glass Ceylon (formerly Ceylon Glass Company) is the only glass bottle manufacturing plant in Sri Lanka. It came under the umbrella of the Piramal Group in 1999. Presently located in Horana, it has been in existence for over 55 years. The company, originally located at Ratmalana, was relocated to Horana in 2007 as a BOI venture under the auspices of the ‘300 Factory Program’ in the Mahinda Chinthana. PGC, at its 250 ton capacity manufacturing facility, has the capability to offer glass containers in different shapes and colours for multiple industries such as food, liquor, pharmaceuticals, agro chemical and soft drinks. The Piramal Group led by Ajay G. Piramal is one of India’s foremost business conglomerates. Driven by the core values of ‘Knowledge, Action, Care’, the Piramal Group has a formidable presence in healthcare, drug discovery and research, glass, real estate and financial services. The Piramal Group also pursues sustained community activities in healthcare, education, emergency medical services and heritage restoration.