Piramal Glass posts Rs. 1.78 b turnover, Rs. 166 m PAT in 3Q

Piramal Glass Ceylon PLC has declared its results at the end of yet another successful quarter performance with revenue growth of 12% from Rs. 1,592 million to Rs. 1,778 million and profit after tax increasing from Rs. 61 million to Rs. 166 million against the previous year similar period.

The sales growth for the quarter was mainly contributed by the domestic market. The positive sentiments that was experienced throughout the year remained during this festive season quarter as well.  All sectors contributed positively whilst food and beverage segment continued to dominate the sale. The domestic sale contributed 78% of the total quarter’s sale as compared to 70% of the previous year same period. 

Damitha Dasanayake and Enoch Perera receiving the award from Minister of Fisheries Mahinda Amaraweera

The export market supply was restricted to Rs. 387 million as capacity had to be released for the domestic market. The exports were mainly focused towards the niche segment bottles thus ensuring consistent margins. 

In addition to this, PGC exports to USA which started at the beginning of the year has grown tremendously during the period under review. 

The gross profit for the third quarter was Rs. 397 million as against Rs. 215 million of the previous year which is the resultant of the increased domestic sale.

As at 31 December 2015, the company achieved a revenue of Rs.4,817 m as against Rs. 4,150 m of previous year with a growth of 16%. The domestic sale increased from Rs. 3,147 million to Rs. 3,888 reflecting a growth of 24% as compared to similar period previous year. The export sale was Rs. 929 million as against Rs. 1,003 million of the previous year.

The gross profit for the nine months ended 31December 2015 was Rs. 1,040 as against Rs. 708 million of the previous year. 

The cost of furnace oil, the main energy source in manufacturing glass, still remains a very grave concern. The price which was set at Rs. 90per litre in 2012has not yet been corrected in line with the decreasing world crude oil prices.

The company along with the industry has taken up this issue with the present government at various occasions and forums as it is an injustice to the industry. It appreciates the Government’s move towards having a pricing formulae for fuel products and hopes furnace oil too would be considered under the formulae pricing linked with global crude oil prices. 

Presently the furnace oil supplied by Ceylon Petroleum Corporation is at Rs. 80per litre whereas by any standards the price charged by CPC should not be more than Rs. 45per litre. The company is hopeful that the Government will consider reduction in the furnace oil prices to help industry to be competitive in international market thereby increasing exports and generating surplus foreign exchange for country.

The company’s furnace which was built in 2007 is due for refurbishment and relining during F2017. The relining together with enhancement of capacity and technological improvements to the existing machinery is scheduled to be carried at an investment of Rs. 3 billion during next financial year. 

Piramal Glass Ceylon PLC received the award for ‘Best Exporter of the Packaging Material Product Sector – 2015’ at the recently-concluded Presidential Export Awards presentation which was held under the participation of President Maithripala Sirisena and senior ministers of the Government at the NelumPokuna Theatre. The Presidential Export Awards organised by the Export Development Board of Sri Lanka is the premier event where the contributions of the exporters are recognised by the State.