Growth in exports to Australia boosts Piramal Glass turnover results
View(s):Piramal Glass Ceylon PLC (PGC) has seen turnover grow by 7 per cent to Rs. 4.1 billion in FY15 while profits after tax ( PAT) was marginally up at Rs.231 million in the 9-month results for the 2014-15 year.
In a media statement, the company said the domestic market showed a growth of 16 per cent during the quarter mainly contributed by the festive season.
The sale during the quarter ended 31st December 2014 was Rs. 1.1 billion against Rs. 967 million earlier.
Export sales grew by 13 per cent to Rs. 476 million during the quarter under review. Gross profit for the quarter was Rs. 215 million, up by 14 per cent from the previous year’s corresponding quarter.
Gross profit for the nine months ended 31st December 2014 was Rs.708 million as against Rs.621 million of the previous year.
The growth in absolute value terms in gross profit was due to the growth of both domestic and export markets.
The main contributor towards the export growth was the Australian market. This additional sale was possible due to the significant improvements achieved by ensuring the stringent quality parameters set by the international customers. In the domestic market too, growth was seen in some segments from non-traditional bottles. Yet the beverage segment remained stagnant.
Despite the considerable increase in sales volumes and the marked improvements in production efficiencies, a substantial increase was not seen in profitability figures due to the high cost parameters which were mainly impacted by raw material and energy costs, the statement said.
“The unprecedented increase in prices in Furnace Oil that took place in 2012 (from Rs.40 to Rs.90 per litre) affected our industry drastically and even after three years the company is not able to pass on the total cost increase to customers due to stiff competition from the international markets,” said CEO Piramal Glass, Sanjay Tiwari. “Further it is very much a concern to note that the Ceylon Petroleum Corporation has not revised the rates over the past three years. The crude oil price which hit US$120 a barrel in 2011 has come down to almost $46 as at today, which is more than a 50 per cent reduction in price.
Yet the furnace oil price has not been addressed accordingly. This state of affairs has affected our competitiveness in the international market as well”. Mr. Tiwari went on to say that in neighbouring countries such as in India, the Furnace Oil price remains at Indian Rs. 21 per litre (equivalent to Sri Lanka Rs. 44.52), resulting in local manufacturers remaining uncompetitive in the market.
“With the situation as it is, we are hopeful and remain optimistic that the Ceylon Petroleum Corporation and the Ministry of Power and Energy would look into the matter and ensure justice to the industry, in the near future by bringing down the Furnace Oil price to the range of Rs. 50 per litre,” said Mr. Tiwari.