Piramal Glass Ceylon reports PAT of LKR 316 million in 1st Half of F21

Board-of-Directors-PGC-Piramal-Glass-Ceylon

Board of Directors, Piramal Glass Ceylon

Piramal Glass Ceylon PLC announced its results for the half-year ended 30th September 2020 with a revenue of LKR 3,560 Mn and a Profit After Tax (PAT) of LKR 316 Mn, as against the revenue of LKR 3,527 Mn and PAT of LKR 95 Mn during the corresponding period in the previous year.

The year started under lockdown situation in the country due to Covid -19 pandemic. The operations commenced with 25% capacity producing glass containers for essential commodities for Food & Pharmaceutical customers. The operations were back to normal only by mid-May leading to a setback in Q1.

However, the demand started improving from the 2nd Quarter of the current financial year and we were able to generate a revenue of LKR 2,230 Mn as against LKR 1,942 Mn of the previous year reflecting a growth of 14.8%. The Profit after Tax stood at LKR 360 Mn for the quarter ended 30th September 2020 as against LKR 74 Mn during the corresponding period in the previous year.

The domestic market witnessed a growth of 20% with sales of LKR 1,560 Mn as against the previous year similar period revenue of LKR 1,291 Mn.

The demand for packaged food witnessed a steep rise due to panic buying by households resulting in higher sales of food jars in the domestic segment during the period under review. The demand for Pharmaceutical & Agro industries also showed a healthy upward trend. However, the Beverage market saw a setback with the restrictions placed on social & festive gatherings.

The Export sale is marginally ahead in FY21 2nd Quarter with LKR 670 Mn as against LKR 651 Mn of the corresponding period during the previous year. The export sale is achieved despite limitations in vessel availability for major markets. Even shipments to nearby markets such as India & Pakistan were impacted.  However, the demand for flavored water bottles for Canadian & North American markets & higher demand for food jars in Australia helped to surpass last year sales.

The company also made inroads in new markets such as the UK, Mexico, Colombia & Netherlands with Food jars & high-end liquor bottles.

We are hopeful to sustain and further improve the performance, as there is a healthy pipeline for new products and new customers in the international markets. Even the demand from domestic customers remains strong. We shall continue to provide the right product quality with excellent customer service and innovation in New Product Development, said Sanjay Jain – Executive Director & COO.

The company achieved a gross profit of 24% at Rs 528 Mn for the F21 Q2 as against 19% at Rs.368 Mn in the corresponding period the previous year, which reflects a growth of 43%.

The half-year closed with a PAT of Rs.316 Mn as against Rs.95 Million of the previous year similar period reflecting earning per share of Cents 0.33 as against cents 0.10 in the previous year.

(Media Release)