Piramal Glass Ceylon PLC (PGC) completed yet another challenging year with highest ever export turnover, PAT of Rs 346 Mn & the Overall Turnover crossing the Rs. 7 Bn mark. A total revenue achieved for the year was Rs.7,398 Mn as against Rs.6,816 Mn of the previous year. The domestic revenue remained almost at par with previous year at Rs. 4,690 Mn as against Rs. 4,680 Mn in F18. Food & Liquor segments were mainly affected although a marginal improvement was noted in the fourth quarter particularly in the Liquor segment, mainly due to the seasonal demand. The 4th Quarter, which is otherwise always been positive due to the festival season could not pick up this year due to political instability in the country. The export market kept its upward momentum with an increase of 27% from Rs. 2,136 Mn in F18 to Rs. 2,708 Mn in F19. This growth is attributed to the new markets developed in many countries namely Malaysia, Africa, Vietnam and Myanmar. The Gross Profit during the year dropped from Rs 1422 mn in the previous year to Rs. 1,406 Mn in F19 resulting in a lowering of margins from 21% to 19%. This subsequently affected the Operating Profits which stood at Rs. 846 Mn as against Rs. 869 Mn of the previous year. The Gross Profit during the period under review was severely impacted by increase in raw material, packing material & transportation costs . The margins further declined due to increase in LPG cost by 35% and furnace oil increase by 15%. Whilst the petrol & diesel prices have been linked to formulae price however the furnace oil price has not been addressed in a similar manner. Our continuous appeals to the concerned authorities were unattended , thus heavily impacting the profitability and sustainability of exports. We still await the government support to implement the linking of Furnace oil price to global crude oil rates which is successfully implemented by all neighbouring countries. The year closed for PGC with a PAT of Rs.346 Mn as against Rs.344 Mn of the previous year. However, following the consistent policy of a 50% payout ratio, the Board of Directors have proposed a dividend of 18%. As notified by the company, Mr. Sanjay Tiwari, CEO & Managing Director is transferred to Head its Manufacturing Operations in USA as the Chief Executive Officer of Piramal Glass USA Inc . Mr Tiwari served PGC Plc for past 13 years and will continue to be in the board of Directors overseeing the operations .It is to be noted that PGC attained several milestone under the leadership of Mr Tiwari. He was instrumental in relocating the plant from Rathmalana to Horana as a BOI venture by tripling the capacity from 100 Tonnes per day to 300 Tonnes per day, development of the export markets, execution of green initiative rooftop solar project , expansion of the silica processing facility , initiating digital journey in the company called Innohub , manufacturing excellence certification & RTMI . Mr. Sanjay Jain, has taken over from Mr Tiwari. Mr Jain,a Mechanical Engineer has experience of over 29 years in marketing & manufacturing. Mr Jain is associated with the group for over 10 years and his last assignment with the Parent group was as Vice President Marketing, with the global responsibility of sales & marketing for food & pharmaceutical glass business.
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