Piramal Glass Ceylon turnover crosses Rs5bn in 9 months to Dec

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For the nine months ended 31st Dec,2016 the overall turnover crossed Rs.5 Bn mark.

The total Turnover showed a growth of 6% from Rs 4,817 Mn to Rs 5,108 Mn. This was contributed by 7% growth in domestic sales from Rs 3,888 Mn to Rs 4,149 Mn & 3% increase in export sales of Rs 929 Mn from Rs 959 Mn.

During the year the company’s export portfolio has showed a marked increase in its sales to USA.

The Profit Before Tax for the nine months period was Rs. 352 Mn as against Rs, 576Mn in the similar period in the previous year .

The major reasons for lower profitability are :-
• The Long Term loan interest cost has yet again started rising from this quarter onwards due to the long term loan of Rs. 3 Bn obtained for the relining.
• The plant was in operative for two months due to relining and hence major portion of the domestic sale being done through trading. Though margins are low we were compelled to resort to trading to ensure continuity of supply to our customers.
• The continuous upward trend of LPG prices has a major impact on the cost of production. The company current LPG prices are linked with Saudi Aramco and forex rates (Us Dollar to Lkr ) .

For Q 3 ended on 31st December ,2016 , The sales was Rs. 1,979 Mn which is an 11% growth over the previous year similar period turnover of Rs. 1,778 Mn.

During the Quarter the domestic market showed a growth of 12% from Rs. 1,391Mn to Rs.1,563Mn whilst the export market growth was 8% from Rs. 387 Mn to Rs. 416 Mn. All sectors contributed positively whilst food & beverage segment continued to dominate the sale.

This is the first quarter in operation after the company plant shutdown of 2 months for its capacity enhancement & upgradation.

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 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 case of LPG.