COLOMBO (EconomyNext) – Sri Lankan container glass maker Piramal Glass Ceylon reported a sharp increase in net profit in the March 2015 quarter which it described as “exceptional” and announced a 23% dividend keeping its consistent policy of 50 percent annual dividend pay-out ratio.
Net profit shot up 241 percent to 208 million rupees in the quarter from the year before while earnings per share were 22 cents against 07 cents, a stock exchange filing said.
Sales grew by 21 percent to 1,642 million rupees in the quarter with domestic sales increasing 25 percent and exports up eight percent.
“The fourth quarter saw a marked improvement against that of the similar quarter in 2014,” a company statement said.
“With this exceptional 4th quarter performance due to the Sinhala and Tamil New Year, the company closed a successful year with an overall turnover of 5,792 million rupees, a growth of 11 percent against the preceding year.”
EPS for the financial year ending 31 March 2015 rose to 46 cents from 30 cents the previous year with net profit up 55 percent to 439 million rupees.
“The domestic market saw a marked improvement during the year. It crossed an annual sale of four billion rupees with a growth of 17 percent which was mainly contributed by the food and beverage segment,” the company statement said.
“The export market too thrived with the company entering into several new markets namely, USA, Philippines, Israel, Nepal and Kenya. Presently they are in small quantities which we are anticipative would grow in volumes in the future.”
PGC, part of India’s Piramal Group, has a 250 tonne capacity manufacturing facility which makes glass containers for the food, liquor, pharmaceutical, agro chemical and soft drinks industries.
Piramal Glass Ceylon said it was also able to develop several new products in the international market despite having to curtail export volumes to give preference to the commitment to the seasonal domestic demand.
However, it said its operational achievements were partly marred by the furnace oil price which still has not been reduced according to the fall in international prices.
“This would create much hard ship in the long run for the company as it does not create a level playing field for PGC with its international competitors.”