Piramal Glass reports impressive results for 1Q

Wednesday, 28 July 2021 00:00 - - {{hitsCtrl.values.hits}}

Turnover up 41% to Rs. 1.87 b; export sales up 53% to Rs. 601 m
Achieves Rs. 235 m after tax profit as against Rs. 44 m loss in 1Q of FY21
Board declares dividend payout of 58 cents per share which is 50% of FY21 PAT

Piramal Glass Ceylon PLC yesterday announced impressive results for the first quarter of FY2022.

It has achieved a turnover of Rs. 1.87 billion, up 41% from a year earlier. Domestic sales during the quarter grew by 36% to Rs. 1.27 billion.

The company said the financial year started on a positive note with the festive season around the corner, however due to the third wave of COVID-19 there were travel restrictions in place to prevent the spread of the virus, leading to a lower demand in the domestic market.

Piramal’s export revenues grew by 53% to Rs. 601 million during the quarter from a year earlier. It said the global scenario of rising ocean freights, and restricted availability of containers and vessel space affected export sales. The company witnessed a similar lockdown situation in 2020, leading to a negative impact on production and sales, however this year, during the first quarter, the company was able to maintain 100% capacity utilisation.

The gross margin for the quarter increased from 8% to 24% as compared to the same period the previous year, while profit after tax amounted to Rs. 235 million as against the loss of Rs. 44 million in 1Q FY21. Executive Director and COO Sanjay Jain said: “The company is aggressively exploring new international markets for its products in specialty liquor and premium water bottle segment. The strategy to innovate in new product design and development, with increased global footprint has helped the company effectively mitigate demand fluctuations in its existing markets due to the pandemic situation.”

The 66th Annual General Meeting (AGM) of the company was held on 22 July, on a virtual platform. At the AGM, the shareholders approved the resolution proposed by the directors for a dividend payout of 58 cents per share, which was 50% of FY21 PAT, to be paid on or before 3 August.

In addition, a special resolution was passed during the AGM to approve the name change of the company from Piramal Glass Ceylon PLC to ‘PGP Glass Ceylon PLC’. The name change will be effective on receiving the requisite approvals from regulatory authorities.