Higher domestic sales boost Piramal Glass 2Q profit

5 November 2015 06:30 pm Views - 1099

Glass bottle and container manufacturer Piramal Glass Ceylon PLc, a unit India’s Piramal group saw its net profit for the September quarter (2Q16) improving to Rs.140.5 million from 83.6 million year-on-year (yoy), continuing to cashing on the higher domestic consumption drive set by the handouts given away by the new government that came into power this January. 

The earnings per share accordingly stood at 15 cents up 09 cents reported for the same quarter of the previous year. 

The revenue for the quarter increased to Rs.1.51 billion from Rs.1.31 billion yoy. 

The company in a statement said sales for the quarter showed a growth of 15 percent yoy to Rs.1.49 billion.

“This was made possible due to the domestic market which continued with its positive momentum with a growth of 22 percent over Q2 of previous year,” the statement noted.

“The company had to increase its level of trading activities to cater to the high domestic demand. At marginal margins, the company opted to import some products with the sole objective of servicing its customer,” it added. 

The company’s products mainly caters to the food and beverage (F&B) segment.  

The statement further said the export market achieved Rs.252 million during the quarter under review against Rs.276 million yoy.

During the period under review, the company launched several new bottles in the USA market. 

Presently USA remains the second largest exporting country in the company’s product portfolio.

Meanwhile, the cost sales for the quarter rose to Rs.1.2 billion from Rs.1.08 billion. The gross profit for the quarter thus stood at Rs.310.4 million, up from Rs.232.6 million yoy. 

The operating profit for the quarter under review was Rs.181 million, up from Rs.131.5 million. 

For the first half ended September 30, 2015 (1H16), Piramal’s net profit improved to Rs.287.3 million against Rs.169.8 million in the same period of the previous year.

The earnings per share too improved to 30 cents from 18 cents.