After tax profit soars from Rs. 316 m to Rs. 543 m
PGP Glass Ceylon PLC reported a revenue of Rs. 4,140 million, as against Rs. 3,560 million in the corresponding period the previous year, reflecting a growth of 16%, with operating profit increasing from Rs. 425 million (12%) to Rs. 814 million (20%) by the half-year ended 30 September 2021. Profit after tax for H1 grew from Rs. 316 million to Rs. 543 million.Revenue for the second quarter remains flat at Rs. 2,264 million, as against Rs. 2,230 million during the corresponding period the previous year, in spite of the impact of loss of sales in the domestic market for over 40 days due to quarantine curfew imposed on 20 August 2021 as well as global supply chain disruptions that impacted container availability and rising ocean freight costs in export market.Domestic sales during the quarter was at Rs. 1,577 million, as against Rs. 1,560 million the previous year. Export revenue showed a marginal growth of 3% compared to the previous year, with a revenue of Rs. 687 million as against Rs. 670 million of the previous year.The gross margin for the quarter increased from 24% to 26% compared to the similar period the previous year, while profit before tax stands at Rs. 447 million as against Rs. 314 million of previous year.Due to the current global supply chain disruption, manufacturing industries across the globe have witnessed a steep rise in input and energy costs. The company is also facing a similar situation in the latter half of Q2, with raw materials, packaging materials, and LPG prices being recorded at an all-time high.To mitigate the unprecedented cost increase, the company plans to optimise operations with digital and analytics tools and continue to focus on premium products with decoration for international customers, thereby partially reducing the cost implication on the domestic market.Piramal Glass Ceylon Executive Director and Chief Operating Officer (COO) Sanjay Jain said: “The company is aggressively exploring new international markets for its products in the speciality liquor segment. The strategy to innovate in new product design and development with increased global footprint has helped the company effectively mitigate demand fluctuations in its existing markets due to the pandemic situation.”
