Domestic sales drop, profits fall at Piramal Glass Ceylon
View(s):Domestic sales fell by 6 per cent while profits also dropped at Piramal Glass Ceylon (PGC) during the first half of the year ending March 2014, the company said this week.
But the company saw a sharp growth in new markets.
The sales drop was attributed to a decline of 11 per cent in the domestic market, and growth of 8 per cent in the export market, when compared to the corresponding six month period of that of the previous year.
PGC said its first half year results for the financial year 2013-14 showed a dip in both turnover and operating profit. Sales were at Rs. 2.5 billion as against Rs. 2.6 billion in the H1 of the previous year while post-tax profit fell to Rs. 376 million from Rs. 412 million (previous financial year).
The company achieved a sale of Rs. 1, 253 million in Q2 F2014 as compared to Rs. 1,338 million in Q2 of F2013. The main reason for the decline in sale was due to a 18 per cent drop in domestic sales to Rs. 875 million from Rs.
1.1 billion. The main sectors affected in the domestic market were the food, beverage and liquor segments, the company said.
Export sales recorded a growth of 39 per cent during the (second) quarter from Rs.270 million during Q2 last year to Rs.377 in Q2 this year.
“It was encouraging to note the development of new markets. Also amidst the Indian rupee depreciation which has adversely impacted Sri Lankan exports to India, PGC managed to maintain its export volume to India by discounting the prevailing prices. Yet this impacted the margins,” said Managing Director and CEO of Piramal Glass, Sanjay Tiwari.
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