ECONOMYNEXT – The Sri Lankan unit of India’s Piramal Glass returned to profits in the September 2019 quarter with net earnings of 74 million rupees as the domestic market recovered strongly and increased capacity improved profitability.
Sales of Piramal Glass Ceylon rose 3.4 percent to 1.9 billion rupees in the quarter with cost of sales down marginally to 1.6 billion and gross profit up 88 percent to 368 million rupees, interim accounts showed.
The firm, the sole glass bottle manufacturer in the island, had made a loss of 8.5 million rupees in the September quarter a year ago
Earnings per share were eight cents in the September 2019 quarter. The share was trading at 4.20 rupees Friday morning, up 20 cents or five percent.
EPS for the six months to September 2019 was 10 cents with net profit up 150 percent to 95 million rupees while sales were stagnant at 3.5 billion rupees.
“The investment on the sixth production line during the 1st quarter this year, paid dividends during quarter 2,” a statement said.
The enhanced capacity helped the company to cater to the increased domestic demand. Also the increased production volumes helped the company absorb the cost escalations and to better its profitability as against the similar period of the previous year.”
Piramal Glass Ceylon said sales growth came mainly from the domestic market, which grew 14 percent over corresponding period the previous year.
(COLOMBO, 15 November 2019)