Piramal focuses on specialty exports to counter energy price effects

Piramal Glass Ceylon PLC, a unit of India’s Piramal group, will be focusing on productivity increases and specialty exports in order to counter the impact of increased fuel costs and foreign exchange losses as a result of the rupee depreciation, according to Chairman, Piramal Glass, Vijay Shah.

“The challenge of energy cost inflation and rupee depreciation affecting imports is serious and real .It will further put pressure on us in terms of low cost imports from India & China, and the price competitions that would be encountered in the international market.” Shah said.

“PGC will take all necessary action to counter these challenges by focusing on productivity increase, specialty exports and passing some price increase in the markets,” he added.

PGC saw turnover reach Rs 5.12 billion rupees for this year, generating a net profit of Rs 686 million, as compared with Rs 579 million in the previous year.

“It is indeed quite unfortunate that this exceptional performance was partially marred by the unprecedented energy price increase & the rupee depreciation which created a considerable dent on the profitability particularly in the last quarter of the financial year,” Shah said.

The firm experienced a 15% increase in power costs and an 80% increase in the cost of Furnace oil over the last quarter of the financial year. Meanwhile, the company also recorded a separate loss of Rs 110 million under administrative costs as a result a revaluation of its Forex Loan balance as at 31st March 2012. The loan had been previously obtained in 2009.