Piramal Glass Ceylon 9-month turnover tops Rs. 5 b

For the nine months ended 31 December 2016, Piramal Glass Ceylon Plc’s overall turnover has crossed the Rs. 5 billion mark.  

Total turnover showed a growth of 6% from Rs. 4,817 million to Rs. 5,108 million. This was contributed by a 7% growth in domestic sales from Rs. 3,888 million to Rs. 4,149 million and a 3% increase in export sales from Rs. 929 million to Rs. 959 million. During the year, the company’s export portfolio has shown a marked increase in its sales to the US. 

The Profit Before Tax for the nine-month period was Rs. 352 million against Rs. 576 million in the similar period of the previous year.

The major reasons for lower profitability were: 

nThe long-term loan interest cost has yet again started rising from this quarter onwards due to the long-term loan of Rs. 3 billion obtained for the relining.

nThe plant was inoperative for two months due to relining and hence a major portion of domestic sale was done through trading. Though margins are low the company was compelled to resort to trading to ensure continuity of supply to its customers.

nThe continuous upward trend of LPG prices had a major impact on the cost of production. The company’s current LPG prices are linked with Saudi Aramco and forex rates (US dollar to LKR).

For the Q3 ended 31 December 2016, sales were Rs. 1,979 million, which was an 11% growth over the previous year’s corresponding period turnover of Rs. 1,778 million. During the quarter the domestic market showed growth of 12% from Rs. 1,391 million to Rs. 1,563 million while the export market growth was 8% from Rs. 387 million to Rs. 416 million. All sectors contributed positively while the food and beverage segment continued to dominate the sale. 

This is the first quarter in operation after the company plant shutdown for two months due to capacity enhancement and upgrades.

The sales growth for the quarter was mainly contributed by the domestic market. The positive sentiments that were experienced throughout the year remained during this festive season as well.  

The company has been lobbying with regulatory authorities to bring down the energy prices specifically furnace oil, in line with world crude oil prices and also to introduce formula pricing as in the case of LPG.