Piramal Glass Ceylon PLC completed the first half of FY20 with revenue crossing the Rs.3.5 billion mark and a profit after tax (PAT) of Rs. 95 million.
The half-yearly turnover stands at Rs. 3,527 million contributed by Rs. 2,476 million from the domestic market and Rs. 1,051 million from the international market.
The sales for the quarter under review showed a growth of 3% from Rs. 1,877 million to Rs.1,942 million. This growth came in primarily from the domestic market, which grew 14% over corresponding previous year. All product categories showed an improvement, but the growth in liquor segment is significant. After a gap of three years, domestic markets are indicating positive trends. Due to the local demand a few export orders are deferred to the next quarter.Export sales for the Quarter amounted to Rs. 659 million as against Rs. 757 million of the previous year. During the period, the company launched a premium liquor bottle for the Indian market and a green hued water bottle for the Maldivian market. The quarter witnessed sampling of a few new products for new markets, which will be commercialised in the second half of the year. The company expects to enter the Premium Liquor Speciality segment with these new products.
The Gross Profit for the Quarter increased from 10% in Q2 FY19 to 19% in Q2 FY20 and the Gross Profit at Half Year was at 17% as against 14% in the 1st half of previous year.
The operating profit margins too saw a significant increase from 4% to 10% during the Quarter under review when compared with the similar quarter in FY19.
The half year operating profit was at 9% when compared to 7% of the first half of FY19.
The PAT at Half Year showed a marked improvement at Rs. 95 million as against Rs. 38 million of the similar period of the previous year.
The investment on the sixth Production line during the first quarter this year paid dividends during quarter two. The enhanced capacity helped the company to cater to the increased domestic demand.
Also the increased production volumes helped the company absorb the cost escalations and to better its profitability as against the corresponding period of the previous year.