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Friday, 21 January 2011 03:06 - - {{hitsCtrl.values.hits}}
Piramal Glass Ceylon Plc (PGC), a manufacturer of flaconnage (glass containers) for food and beverages, pharmaceuticals, cosmetics & perfumery, has reported its best quarter ever to date.
Net sales for the quarter ending 31 December, 2010 grew by 28% to Rs. 1166 million, while gross profits grew by 38% to Rs. 360 million and net profit for the period was Rs. 190 million.
PGC’s Chief Executive Officer and Executive Director, Sanjay Tiwari while announcing PGC’s results said: “We’re proud to report the best ever quarter for PGC. This quarter has vindicated our investments and hard work. We have invested in some strategic initiatives in the last few years and put in a lot of effort in turning around PGC. We have improved our manufacturing efficiency and realigned our portfolio offerings. We have put a major onus on manufacturing excellence with a view to achieving Six Sigma and the Global implementation of SAP. As a result, we have achieved 84% production efficiency.”
The third quarter was an exceptional one for the company with the festive season playing a positive indicator towards high domestic sales which grew by 35% from Rs. 663 million to 898 million, while exports increased by 11% from Rs. 244 million to Rs. 269 million. A significant volume growth of 9% was also a highlight for the quarter.
According to Tiwari, the export market played a significant role during the Quarter with sales consisting predominantly of the high realisation, specialty segment, which contributed to better margins and an increased bottom line. The high realisation segment consisted of 71% of the Quarter’s export volume, which in turn helped the overall export realisations to grow by over 50% per tonne, against that of the similar period of the previous year.
The Total Revenue for the nine months ending 31 December, 2010 grew by 15% to Rs.3, 061 million. The Gross Profit [GP] ratio increased to 32% this year as against 27% during the similar period of the previous year. The company achieved a Gross Profit of Rs.972 million for the first 9 months of the FY2011 as against Rs.705 million during the same period of the previous year. The company crossed the Rs. 400 million mark in Profit After Tax for the period as against a loss of Rs. 89 million during the same period of the previous year.
A combination of robust domestic and export sales across the first 9 months of FY2011 saw PGC achieve Rs.2, 308 million and Rs.753 million respectively in both markets. PGC has demonstrated its continuing focus on the specialty market with outstanding export figures. With a tonnage of 7,567 and a value of Rs. 539 million, PGC has once again proved its capability and intent in expanding its export offerings in niche markets.
The productivity improvements too played their part by reducing production costs. During this period the company was able to produce 12% more than the similar period of the previous year.
The continuous achievements of Piramal Glass Ceylon during the FY 2010 were also recognised by external agencies with the company being awarded a Gold Medal at the NCE Export Awards in the Extra Large Category and a Merit Award at the CNCI Achievers of Industrial Excellence. A Gold Award in the Manufacturing sector and a Silver Award in the Best Tech Savvy Company segment at the National Business Excellence awards was yet another achievement.
“We are indeed thrilled at the performance of Piramal Glass Ceylon and we are confident that the growing domestic markets coupled with that of niche exports, the company’s continuous strive for excellent performance, as well as the commitment and investment that we made in last few years have showed fruition,” said Chairman of Piramal Glass Ceylon Plc, Vijay Shah.
