ECONOMYNEXT – Piramal Glass Ceylon said net profit rose 21.7 percent to Rs202 million from a year ago in the December 2016 quarter, the first quarter in operation after a two-month shutdown to upgrade its furnace.
Earnings per share for the quarter were 21 cents, according to interim accounts filed with the stock exchange. The share was last traded at Rs5.50.
EPS for the nine months ending 31 December 2016 were 29 cents, with net profit down 39 percent to Rs276 million from the previous year.
A statement said sales grew 6 percent to Rs5.1 billion over the period, with 7 percent growth in domestic sales and a 3 percent increase in export sales.
“During the year, the company’s export portfolio has showed a marked increase in its sales to USA,” it said.
Piramal Glass Ceylon said nine month profits were lower because of higher borrowing costs, the plant closure, and reliance on lower-margin trading and rising gas prices.
“The long-term loan interest cost has yet again started rising from this quarter onwards due to the long-term loan of Rs3 billion obtained for the relining,” it said.
“The plant was inoperative for two months due to relining and hence a major portion of domestic sales were done through trading. Although margins are low, we were compelled to resort to trading to ensure continuity of supply to our customers,” the company said. “The continuous upward trend of LPG prices has a major impact on the cost of production.”
(COLOMBO, Feb 17, 2017)