Sri Lanka Piramal Glass to expand capacity, annual profit up 50-pct
ECONOMYNEXT – Sri Lankan glass bottle maker Piramal Glass Ceylon said net profit during the year ended 31 March 2016 rose almost 50 percent with strong domestic sales although earnings dipped in the fourth quarter.
The firm, a unit of India’s Piramal Glass Ltd., said annual profit rose 49 percent to 654 million from a year ago with sales up 17 percent to 6.8 billion rupees.
“The revenue growth was mainly contributed by the domestic sales which saw a significant growth of 23 percent from 4,422 million rupees to 5,436 million rupees,” a stock exchange filing said.
“The major portion of growth was backed by food and beverage segments.”
Annual earning per share were 0.69 cents against 46 cents the year before.
“The Board of Directors has proposed a 35 percent dividend maintaining its consistent policy of dividend pay-out ratio,” the statement said.
In the March 2016 quarter EPS fell to 21 cents from 22 cents the year before with net profit at 200 million rupees although sales grew 18 percent to 1.9 billion rupees.
Piramal Glass Ceylon said it had “exceptional sales during the festive season.”
Sanjay Tiwari, Managing Director of Piramal Glass Ceylon, said the company’s furnace which was built in 2007 is to be rebuilt and relined during F2017 with an investment of three billion rupees.
Capacity will be increased to 300 tonnes a day from the existing 250 tonnes.
“The company is also doubling the facility for producing colour bottles through colouring forehearth. This expansion also includes further investment in more sophisticated down-stream facilities.”
(Colombo/April 25 2016)