Sri Lankaâ€™s Piramal Glass March net down 56-pct
ECONOMYNEXT – Piramal Glass Ceylon (PGC) said net profit fell 56% to Rs92 million in the March 2018 quarter from a year ago with annual earnings also down owing to lower sales and higher depreciation, interest and energy costs.
The Sri Lankan bottle maker’s March quarter sales were stagnant at Rs1.7 billion, according to interim accounts filed with the stock exchange.
Quarterly earnings per share were 10 cents. PGC shares last traded at Rs5.50, Monday, up 10 cents or 1.85%.
EPS for the year to 31 March 2018 fell to 36 cents from 51 cents the previous year with net profit down 29% to Rs344 million and sales almost stagnant at Rs6.8 billion.
Piramal Glass Ceylon, owned by India’s Piramal group, said domestic revenue dipped 16% to Rs4.6 billion during the year.
“Beverage and liquor segments were affected with the introduction of new taxes and levies while agro sales were affected due to the adverse weather conditions,” a statement said.
“In the export segment, it was encouraging to note the Rs2 billion mark being crossed with a growth of 77%.”
The exports increased mainly in the US and Canadian markets with the company gaining entrance to several new markets which include Malaysia, Africa, Vietnam and Myanmar.
Exports to US grew over 150%, to Australia by 72% and saw a six-fold increase in the Canadian market.
PGC said there was a marginal increase in annual gross profit margins from 20% to 21%.
“These results were achieved despite the high impact of depreciation on the investments made during the year,” it said.
“The depreciation increased by 31% from Rs.553Mn to Rs.722Mn. The profitability was further affected by an increase in interest costs and high energy prices.”
The annualized impact of the interest on the long term loan of Rs3 billion taken for the relining and upgrade of the facility at Horana was reflected in the year under review, PGC said.
The interest cost rose to Rs 328 million from Rs176 million the previous year.
The impact of high furnace oil prices and fluctuating LPG prices continued during the period under review, the company said.
(COLOMBO, May 28, 2018)