Domestic sales dip, high energy cost impact Piramal Glass Ceylon results in Q2
Monday, 21 October 2013 00:00
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Piramal Glass Ceylon PLC (PGC) announced its first half year results for the Financial Year 2013-14 with a dip in both the Turnover and the operating profitability. The sales were at Rs. 2,476 million as against Rs. 2,631 million in the H1 of the previous year and the PAT at Rs. 376 million as against Rs. 412 million of the same period during the previous year.
The half year sale saw a drop of 6% which was attributed to a decline of 11% in the domestic market, and growth of 8% in the export market, when compared to the corresponding six month period of that of the previous year.
The company achieved a sale of Rs. 1,253 million in Q2 F2014 as compared to Rs. 1,338 million in Q2 of F2013. The main reason for the decline in sale was due to the decline in domestic sales by 18% from Rs. 1,068 million to Rs. 875 million. The main sectors affected in the domestic market were the Food, Beverage and Liquor segments.
The export sale saw a growth of 39% during the quarter from Rs. 270 million of Q2 F13, to Rs. 377 in Q2 F14. “It was encouraging to note the development of new markets growing over 100% as against the similar quarter of the previous year. Also amidst the Indian Rupee Depreciation which has adversely impacted the Sri Lankan Exports to India, PGC managed to maintain its Export volume to India by discounting the prevailing prices. Yet this impacted the margins,” said Piramal Glass Managing Director and CEO Sanjay Tiwari.
The Gross Profit was at 18% as against the 30% achieved during the similar period of the previous year. According to Tiwari, the main contributor towards this drop was the high electricity tariff increase which affected the production cost directly and indirectly due to increased Raw Material Costs, Packing Material and reduction in production volume due to low off take in the domestic market, which increased the cost of production.
The PBT as at 30 September 2013 was Rs. 388 million, which included Rs. 297 million of land sale profit. Thus, the Operational PBT was Rs. 91 million as against the PBT of Rs. 420 million in H1 of FY13.
