Piramal Glass posts Rs. 4.15 b turnover, Rs. 231 m PAT in 9 months

Thursday, 12 February 2015 02:00 -     - {{hitsCtrl.values.hits}}

Piramal Glass Ceylon PLC (PGC) has announced its nine month results for the Financial Year 2014-15 with a 7% growth in turnover from Rs. 3,864 million in FY14 to Rs. 4,150 million in FY15 with a PAT of Rs. 231 million as compared to Rs. 222 million in F2014 (which includes a profit of Rs. 100 million from land sale). The domestic market showed a growth of 16% during the quarter mainly contributed by the festive season. The sale during the quarter ended 31 December 2014 was Rs. 1,116 million as compared to Rs. 967 million of the similar period of previous year. Export sales saw a considerable increase of 13% to Rs. 476 million in the quarter under review from Rs. 422 million of the previous year. The Gross Profit for the quarter was Rs. 215 million as compared to Rs. 189 in F 14 – Q3 showing a growth of 14% The gross profit for the nine months ended 31 December 2014 was Rs. 708 million as against Rs. 621 million of the previous year, reflecting a Gross Profit Ratio of 17% as against 16% of the previous year. The growth in absolute value terms in gross profit was due to the growth of both Domestic and Export Markets. The main contributor towards the export growth was the Australian market. This additional sale was possible due to the significant improvements achieved by ensuring the stringent quality parameters set by the international customers. In the domestic market too, a growth was seen in some segments from non-traditional bottles. Yet the beverage segment remained stagnant. Despite the considerable increase in sales volumes and the marked improvements in production efficiencies, a substantial increase was not seen in profitability figures due to the high cost parameters which were mainly impacted by raw material and energy costs. “The unprecedented increase in prices in furnace oil that took place in 2012 (from Rs. 40 to Rs. 90 per litre) affected our industry drastically and even after three years the company is not able to pass on the total cost increase to customers due to stiff competition from the international markets,” said Piramal Glass CEO Sanjay Tiwari. “Further it is very much a concern to note that the Ceylon Petroleum Corporation has not revised the rates over the past three years. The crude oil price which hit $ 120 a barrel in 2011 has come down to almost $ 46 as at today, which is more than a 50% reduction in price. Yet the furnace oil price has not been addressed accordingly. This state of affairs has affected our competitiveness in the international market as well.” Tiwari went on to say that in neighbouring countries such as in India, the Furnace Oil price remains at INR 21 per litre (Equivalent to Sri Lanka Rs. 44.52), resulting in local manufactures remaining uncompetitive in the market. “With the situation as it is, we are hopeful and remain optimistic that the Ceylon Petroleum Corporation and the Ministry of Power and Energy would look into the matter and ensure justice to the industry, in the near future by bringing down the furnace oil price to the range of Rs. 50 per litre,” said Tiwari.