Piramal continues its profit trend

Piramal Glass Ceylon Plc (PGL) indicated that the company’s net sales for the quarter ending 31st December, 2009 grew by 12% to Rs. 910 million. Their Gross profits grew by 27% to Rs. 261 million, while the Net profit for the period was Rs. 28.6 million as compared to a loss of Rs. 87 million for the same period last year.

PGC is a manufacturer of flaconnage (glass containers) for food and beverages, pharmaceuticals, Agro ,as well as cosmetics & perfumery and its Executive Director, Sanjay Tiwari indicated that they have continued the profit trend this quarter too, after the turnaround the company achieved second quarter of this year.

The total increase in sales during the quarter was only due to the increase in the export segment. The company reported an export of Rs. 243 million, which in turn reflected a growth of 241% during the third 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 some new bottles in the international market.

The company in its cost reduction drive converted more than 50% of its long term Rupee debt to foreign currency loans. This was done looking forward to the exponential growth in the exports. This conversion was done in November 2009 with the same consortium of banks. The management is confident that this will result in the company being able to reduce its interest costs in the future periods.

Tiwari said that the domestic market had continued to show a drop of 9% as against that of the same period of the previous year. “The Company has yet to realize the benefits in the domestic market with the opening up of the North and East subsequent to the cessation of the war” he said.

- Asian Tribune -