Piramal Ceylon posts Rs.210mn net for 4Q

Sri Lanka’s only glass bottle maker, Piramal Glass Ceylon PLC, posted a net profit of Rs.209.75 million for its fourth quarter of 2017 (4Q17), slightly up from Rs.200.68 million year-on-year (YoY).

Earnings per share increased to 22 cents from 21 cents, against a share price of Rs.6 at the end of trading yesterday.

Revenue fell to Rs.1.68 billion from Rs.1.94 billion YoY, while cost of sales fell to Rs.1.24 billion from Rs.1.48 billion YoY. 

Selling and distribution expenses fell to Rs.19.98 million from Rs.110.22 million YoY. However, finance costs increased to Rs.79.36 million from Rs.13.30 million YoY.

Total assets as at March 31, 2017 increased to Rs.9.07 billion from Rs.6.66 billion at the start of the financial year mainly due to a Rs.3 billion upgrade of the company’s main production facility, which increased the daily production capacity to 300 metric tonnes from 
250 metric tonnes earlier.

Net assets per share increased to Rs.4.43 from Rs.4.28 in the course of the 2017 financial year.

Long-term interest-bearing borrowings increased to Rs.2.72 billion from Rs.472.58 million at the start of the financial year, while short-term interest-bearing borrowings increased to Rs.749.46 million from Rs.396.42 million in the same period.

For the 2017 financial year, Piramal Glass managed to post a net profit of Rs.485.48 million, down from Rs.654.40 million YoY, due to the two-month halt of its production facility to conduct upgrades, during which period, sales were conducted through low margin imports, including from its parent in India.

Earnings per share for the year were 50 cents, down from 69 cents YoY, while dividends of 26 cents were announced, compared to Rs.0.35 YoY.
Revenue edged up to Rs.6.78 billion from Rs.6.76 billion YoY, of which export sales fell to Rs.1.21 billion from Rs.1.32 billion YoY due to disruption from the capacity upgrade, although new products were introduced in the US and Australia.

Cost of sales increased to Rs.5.41 billion from Rs.5.26 billion YoY due to increasing costs of furnace oil and the depreciation of the rupee.
The finance costs for the year increased to Rs.176.42 million from Rs.74.45 million YoY. 

India’s 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. The world’s largest sovereign fund under Norges Bank also owns 2.68 percent of the shares in Piramal Glass.