Piramal Glass Ceylon PLC has announced its results for the first quarter of the 2017-18 financial year with Rs. 1,403 million in revenue and Rs. 105 million in profit after tax showing a marginal decline when compared with the profitability of the first quarter of the 2016-17 financial year.
The sale during the first three months of FY 2017-18 was Rs. 1,403 million, which reflects a de-growth of 17% when compared to the similar period of previous year
Domestic sales stood at Rs. 1,084 million as against Rs. 1,346 million of the similar quarter in the previous year, reflecting a de-growth of 19%.
A dip in the overall domestic market was experienced which impacted sales in all segments. The export sales for the quarter was at Rs. 319 million as against Rs. 338 million received in the similar quarter of the previous year.
The major decline in the export market was from exports to India due to the changes in the tax structure with the announcement of GST implementation in that country. All other geographical locations, namely, Australia, USA and Canada have showed positive growth figures during the period under review. Amidst the adverse sales impact the company showed marked improvement in its profitability indicators.
The gross profit during the quarter under review was 25% as compared to 18% in the similar quarter whilst the operating profit moved up to 15% from 9% of the previous year.
The incremental operational profit margin improvement was possible due to the reduction of trading sales. With the new facility now well stabilised, the domestic market is being supplied mainly with in-house manufactured bottles which has replaced the imported bottles. Last year due to capacity constraints a considerable portion of domestic sales was done through imports.
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