Piramal Glass Ceylon records Rs. 414 million Profit After Tax

Piramal Glass Ceylon PLC (PGC) has announced its 1st half year results for the Financial Year 2012-13 with an 8 % growth in turnover from Rs. 2,385 million in FY12 to Rs. 2,592 in FY13 & a marginal growth of 9 % in PAT from Rs. 384 million to Rs. 414 million.

While the Gross Profits grew marginally in volume by 3 % during the first six months of the current financial year, the GP ratios saw a decline to 30 % as against 31 % in the previous year 1st half. This drop was mainly contributed by high energy prices. In comparison to last year similar period the energy cost during the period grew by 51% with Furnace oil taking the lead with a price increase of almost 80 %. The LPG rate was also affected adversely in the 2nd quarter due to increasing trend in Saudi Armco. The bank interest rates too saw a continuous increase month on month during the period under review.

The domestic sales value grew by 12 % from Rs. 1,755 million to Rs. 1,963 million. There was a dip in the overall growth of the domestic market especially in the liquor & food sector. The export market remained at par with last year at Rs. 630 million. There were increased realisations in the export market due to the new product mix, which is definitely a healthy sign for the organisation. The realisations grew by almost 18 % against the previous year. The company also broadened its geographical spread by selling 28 % of its exports in the Australia/New Zealand market which was only 8 % in the previous year.

New product development was at its peak during the period. PGC developed a new range liquor bottles in different colours for Australian and Indian markets.

“We are confident that our investments in environmentally friendly practices and continuous innovation we will achieve our vision of being the preferred partner for packaging solutions. The domestic market though at a dip has clear potential, and our growing geographical reach has been noteworthy,” said Sanjay Tiwari CEO/Managing Director of Piramal Glass Ceylon Plc.

The company continued its upward momentum in productivity, by surpassing the production volume during this half year as against that of the corresponding period of the last financial year. The efficiencies too have by passed the previous year efficiencies which resulted in the increase in output.

Thus, amidst the substantial cost escalations this helped the company to better its profitability as against the similar period of last year.

Piramal Glass also continued to be recognised at national level for its performance with a Merit award at the CNCI Achiever Awards -2012 and the Gold Award at the Export award ceremony held by the National Chamber of Exporters.