Piramal Glass reports turnaround in second quarter

Piramal Glass Ceylon Plc (PGC) reported a turnaround in the second quarter of the Financial Year 2010. Revenues grew by 28 percent to Rs. 951 million, while the Operating Profits were up by 32 percent to Rs. 302 million. The Company also reported a Net profit of Rs. 0.73 million after six consecutive quarters of Net Losses.

"Piramal Glass Ceylon Plc, a manufacturer of flaconnage (glass containers) for food and beverages, cosmetics, perfumery, as well as pharmaceuticals, have reported a turnaround in their second quarter results for the financial year 2010," said PGC, CEO and Executive Director Sanjay Tiwari.

According to Tiwari, net sales for the quarter ending September 30, 2009 grew by 28 percent to Rs. 951 million. "Our Operating profits grew by 32 percent to Rs. 302 million, while the Net profit for the period was Rs. 0.73 million as compared to a loss of Rs. 33 million for the same period last year."

The second quarter had ended on a satisfactory note for the Organization. "This quarter's performance is truly the outcome of improved manufacturing operations, an increase in our export market share and focused efforts towards cost optimization," said Tiwari.

The total increase in sales during the quarter was mainly due to the three fold increase in the export segment. The company reported an export of Rs. 330 million, which in turn reflected a growth of 312 percent during the second quarter of the financial year 2010.

The company's exports consisted of coloured liquor and wine bottles, as well as flint liquor and food bottles. During the period under review the Company also launched six new colour bottles for exports to various countries. As the sole manufacturer of glass bottles in the country the company has to feed the entire local market, with the surplus being exported.

"As a result of global recession the export market has become increasingly competitive with China and India posing serious threats.

The company's ability to withstand such competition was derived solely from its niche colouring facility and the availability of the Plant's full capacity, which has not only enabled increased production, but has helped the Company to become more competitive in the international market" said Tiwari.

The total revenue for the half year ending September 30, grew by 23 percent to Rs. 1,751 million.

The Operating Profit was up by 42 percent for the first six months of the financial year 2010 to Rs. 502 million as compared Rs. 354 million in the same period of the previous year, while the net loss for the first half of the financial year 2010 was lower at Rs. 118 million when compared to the loss of Rs. 153 million in same period of the financial year 2009.