Piramal Glass Ceylon (PGC) will maintain its profits in their upcoming quarters since the company is the market leader in glass manufacturing, according to stock analysts. “With over 85% market share, there is no considerable competition from any local players. Therefore they can retain the current market demand and concentrate more on international markets,” Charuka Suchendra, Research Analyst Asha Phillip said.
Analysts said that currently they have doubled their production capacity to 250 tonnes per day in the new plant in Horana with which PGC is capable in facilitating future demand from foreign markets.
However another analyst noted that the company is relatively high geared but the current low interest rates in the economy will reduce their finance cost in upcoming quarters. Reduction in finance cost was already witnessed in the recent quarter at Rs 124.4 million compared to the Rs 177.1 million during the quarter completed December 31, 2008.
Mr. Suchendra said that LPG prices are positively co-related with crude oil prices in the world market, where a hike in crude oil prices will increase their cost of sales.
s forecasted that the emerging local markets in north and east as well as international markets such as India, Australia and South Africa will generate more returns towards the top line compared to the expected price hike in LPG,” he said. PCG is a venture of Piramal Enterprise Ltd of Mumbai India, in Glass Container for Packaging.
It was acquired by Gujarat Glass Pvt Ltd (part of Piramal Enterprises Limited) in 1999-2000. Gujarat Glass Pvt Ltd currently holds 54% of the equity of Piramal Glass Ceylon Plc. |
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