Feb 14, Colombo: Piramal Glass Ceylon, the only Glass Bottle Manufacturing plant in Sri Lanka under the Piramal Group of India reported that for the nine months ended 31st December 2017 the overall turnover was in par with the previous year sales of Rs. 5 billion mark.
The domestic sale for the period was Rs. 3.375 billion as against the previous year Rs. 4.065 billion depicting a drop of 17% whilst the Export market showed a growth of 70% from 959 million in the previous year to Rs. 1.627 billion as at 31st December 2017.
The Domestic sale for the quarter under review was Rs. 1.256 billion as against Rs. 1.563 billion of the previous year which reflected a 20% drop in sales whilst the exports showed a commendable growth of 75% from Rs. 416 million to Rs. 729 million.
The dip felt in the overall domestic market since beginning of the year did not recover during the quarter under review. Due to the increase in levies & taxes, the final products are becoming more expensive. This results to decline in consumer demand which ultimately reflects in the reduction of sales in Food, Beverage & Liquor Segment. Added to this, the impact of extreme weather conditions impacted the sales in Virgin Coconut Oil and Agro Chemical segment.
The management has tried its best to channel the extra capacity towards the export market to bridge the gap due to the loss of domestic volumes. The sale to USA, Canada Australia and neighboring markets showed exceptional increase which partly helped to shorten the gap. PGC is focusing to develop these potential market to contract the incremental capacity added in the year 2016/17.
The Gross Profit for the nine months ended 31st December 2017 grew from Rs. 934 million to Rs. 1.039 million by thus crossing the 1 billion mark. This is an improvement of GP margin from 18% to 21%. The operating profit too showed a marked improvement of Rs.
595 million as against Rs. 448 million of the previous year. Yet the PBT remained static at Rs 351 million due to the increased Finance cost incurred for the Long term loan.
The incremental operational profit margin improvement was possible due to the reduction of trading sales. With the new facility now well stabilized the domestic market is being supplied mainly with in house manufactured bottles which has replaced the imported bottles. Last year due to capacity constraints a considerable portion of the sale was done through imports.
Piramal Glass Ceylon (Formerly Ceylon Glass Company) is the only Glass Bottle Manufacturing plant in Sri Lanka. It had the opportunity of coming under the Umbrella of Piramal Group in 1999. Presently Located in Horana, it has been in existence for over 55 years. The company originally at Ratmalana was relocated at Horana in 2007 as a BOI venture. PGC at its Manufacturing Facility has the capability to offer glass containers in different shapes and colors for multiple industries such as Food, Liquor, Pharmaceutical, Agro chemical & Soft drinks.