Sri Lanka’s sole glass bottle manufacturer Piramal Glass Ceylon PLC posted a net profit of Rs. 202.32 million for the quarter ended December 31, 2016 (3Q17), increasing 21.59 percent year-on-year (YoY) after conducting major production expansions in the previous quarter.
Basic earnings per share increased to Rs. 0.21 from Rs. 0.18 YoY.
Revenue for 3Q17 increased 11.30 percent YoY to Rs. 1.98 billion while cost of sales increased 4.70 percent YoY to Rs. 1.45 billion.
The domestic market grew 12 percent YoY to Rs.1, 563 million whilst the export market grew 8 percent YoY to Rs. 416 million.
Selling and distribution expenses doubled YoY to Rs. 97.85 million, while finance costs increased to Rs. 73.76 million from Rs. 17.54 million YoY due to the loan taken to conduct expansions.
The company asset base at the end of 3Q17 stood at Rs. 9.15 billion, up from Rs. 6.21 billion at the start of the financial year due to investments in increasing production capacity, resulting in net assets per share increasing to Rs. 4.22 from Rs. 4.06.
Long-term interest bearing loans and borrowings increased to Rs. 2.91 billion from Rs. 245.15 million in the same period.
The upgrade and expansion programme pushed Piramal’s net profits for the first 9 months of the current financial down to Rs. 275.12 million a 39.14 percent fall YoY.
Since manufacturing was halted for two months for expansions, low-margin trading was conducted to ensure continuous supply to customers.
Revenue for the 9 months increased 6.02 percent YoY to Rs. 5.11 billion, while cost of sales increased 10.50 percent YoY to Rs. 3.78 billion.
The upward trend of LPG prices as well as the government’s decision to maintain furnace oil prices above global crude prices weighed on production costs.
Selling and distribution expenses increased 77.88 percent YoY to Rs. 192.27 million.
India’s Piramal Group subsidiary Piramal Glass Limited owns 56.45 percent of the shares in Piramal Glass Ceylon, while the Employees Provident Fund owns 9.51 percent of the shares.