Turnover at Rs 6.7 Billion & Profit After Tax at Rs 654 Million
Piramal Glass Ceylon PLC (PGC) ended a very successful year with a record growth in Turnover & Profitability. The company recorded its highest ever turnover this year of Rs. 6,755Mn and a profit after tax (PAT) of 654Mn. With this achievement the Board of Directors have proposed 35% dividend maintaining its consistent policy of dividend pay-out ratio.
Revenue achieved for the year was Rs 6,755Mn depicting a growth of 17% as against Rs. 5,792Mn of the previous year. The revenue growth was mainly contributed by the domestic sales which saw a significant growth of 23% from Rs. 4,422Mn to Rs. 5,436 Mn . The major portion of growth was backed by food & beverage segments.
The export market remained constant for the year under review as the focus was to service the growth in the domestic market. Some mid mass export orders were deferred to make available capacity for the domestic production. Yet amidst these constraints it was motivating to see several new products being designed and launched in the USA market. In the Export portfolio USA is now amongst the top 3 exporting locations of PGC.
The F16 Q4 reflected a marked improvement against that of the similar quarter in F15 due to exceptional sales during the festive season. The total sales during the quarter grew by 18% from Rs 1642 Mn to Rs 1938 Mn of which the domestic sales and exports were up by 21% and 6% respectively.
During the year under review there were unforeseen interruptions in the production processes due to ageing furnace. However, the company serviced the increased domestic demand by stretching the production and temporarily resourcing through trading even though it is not economically attractive.
The operational achievement was marred by the furnace oil rates which is still at the 200% above the international level. This has affected the exports of the company as there is no level playing field to compete in the international market. The company has made several representation to the relevant Government authorities to support the domestic industry which in turn will help in increasing the export revenue for the country.
The Gross Profit for the year was at 1,497 as against 1,117 of the Previous year with a growth of 34% whilst the operating profit as 879Mn as against 635Mn of the previous year. The incremental profit is the outcome of the increased sales volumes.
The earning per share increased by 50% to Rs 0.69 per share as against Rs 0.46 per share during the previous year.
Mr. Sanjay Tiwari CEO & Managing Director of Piramal Glass Ceylon said “The Company’s Furnace which was built in 2007 is due for rebuilt & relining during F2017. The relining together with enhancement of capacity from existing 250 Tonnes per day to 300 Tonnes per day & technological improvements to the existing machinery by adding further flexibility is scheduled to be carried at an investment of Rs. 3 Billion during the 2nd quarter of the current financial year. This upgraded facility will help the company to service the present and future increased demand in the domestic segment for all industries namely food & beverages, pharmaceuticals, agro chemicals, liquor the upcoming segment of virgin coconut oil. The new facility will also enable PGC to deliver more innovative designs in different sizes & colours. The company is also doubling the facility for producing colour bottles through colouring forehearth. This expansion also includes further investment in more sophisticated down-stream facilities.”