Piramal triples first half profit

Piramal Glass Ceylon PLC, the sole player in the domestic glass container industry, with a significant export presence, has posted an exceptional first half in the current financial, better than tripling its profit to Rs. 316 million from Rs. 95 million earned a year earlier when business took a punch from the Covid pandemic following the Easter bomb.

Indian-controlled Piramal, quoted on the CSE, said in a news release announcing its half year results that it expected to do well in the second half of the year as well saying “we are hopeful to sustain and further improve the performance as there is a healthy pipeline for new products and new customers in the international market.”

The first half results were achieved despite modest turnover growth, up to Rs. 3.56 billion from Rs. 3.53 billion a year earlier.

The company’s share price gained sharply on the CSE following the release of the first half results.

Reporting that the period under review began with the Covid lockdown with production commencing at 25% capacity by making glass containers for food and pharmaceutical customers. Operations normalizing by mid-May resulting in a first quarter setback.

But demand had begun improving from the second quarter with revenue of Rs. 2.23 billion generated against Rs. 1.94 billion a year earlier, up 14.2%. Profit after tax for the quarter ended Sept. 30,2020, was Rs. 360 million, up from Rs. 74 million a year earlier.

Reporting 20% growth in the domestic market with sales up to Rs. 1.56 billion from Rs. 1.29 billion a year earlier, Piramal said there was a steep rise in demand for its products as a result of panic buying of food. This resulted in higher sales of food jars locally. The demand from the pharmaceutical and agro industries also showed a healthy upward growth though the beverage market saw a setback due to restrictions on social and festive gatherings.

Export sales gained marginally at Rs. 670 million, up from Rs. 651 million a year earlier. The company said improved exports were achieved in the face in limitation of vessel availability in major markets with exports even to India and Pakistan impacted.

“However, the demand of flavoured water bottles for Canadian and North American markets and higher demand for food jars in Australia helped surpass last years sales,” Piramal said. “The company also made inroads in new markets such as UK, Mexico, Colombia and Netherlands with food jars and high-end liquor bottles.”

Piramal Glass Ceylon (formerly Ceylon Glass Company) is the only glass bottle manufacturing plant in Sri Lanka. Coming under the umbrella of India’s Pirmal Group in 1999, its factory was relocated to Horana from Ratmalana in 2007 as a BOI venture.