Primal Glass achieves turnaround in 2Q

Piramal Glass Ceylon Plc reported a turnaround in the second quarter of the Financial Year 2010. Revenues grew by 28% to Rs 951 million, while the Operating Profits were up by 32% to Rs 302 million. The Company also reported a Net profit of Rs 0.73 million after 6 consecutive quarters of Net Losses.

Sanjay Tiwar

“Piramal Glass Ceylon Plc (PGC), a manufacturer of flaconnage (glass containers) for food and beverages, cosmetics, perfumery, as well as pharmaceuticals, have reported a turnaround in their second quarter results for the financial year 2010” said the CEO and Executive Director of PGC, Sanjay Tiwari.
According to Tiwari, net sales for the quarter ending 30th September,2009 grew by 28% to Rs 951 million. “Our Operating profits grew by 32% to Rs 302 million, while the Net profit for the period was Rs 0.73 million as compared to a loss of Rs 33 million for the same period last year”.
The second Quarter had ended on a satisfactory note for the Organisation. “This quarter’s performance is truly the outcome of improved manufacturing operations, an increase in our export market share and focused efforts towards cost optimization,” said SanjayTiwari.
The total increase in sales during the Quarter was mainly due to the three fold increase in the export segment. The company reported an export of Rs 330 million, which in turn reflected a growth of 312% during the second quarter of the financial year 2010. The company’s exports consisted of coloured liquor and wine bottles, as well as flint liquor and food bottles. During the period under review the Company also launched six new colour bottles for exports to various countries.
The Total Revenue for the half year ending 30th September, grew by 23% to Rs 1751 million. The Operating Profit was up by 42% for the first six months of the financial year 2010 to Rs 502 million as compared Rs. 354 million in the same period of the previous year, while the Net loss for the first half of the financial year 2010 was lower at Rs.118 million when compared to the loss of Rs 153 million in same period of the financial year 2009.
“Once again PGC has demonstrated its capability of going global by achieving an encouraging growth of 247% in export sales as against the corresponding period in the previous year. The exports during the first half increased to 37% of total revenue as against the figure of 13% in same period in the financial year 2009”.
During the period under review, PGC exported a total volume of over 14,000 tonnes, consisting of over 51 million bottles to various countries.
Tiwari said that the domestic market had continued to show a drop of 11% as against that of the first half of the previous year. “The Company has yet to realize the benefits of the opening up of the North and East subsequent to the cessation of the war” he said.