Land sale boosts Piramal 1Q14 net profit; deviates export market focus
Piramal Glass PLC, the Sri Lankan unit of India’s Piramal group, has recorded a net profit of Rs.358 million for the three months ended June 30, 2013 (1Q14), helped by the disposal of a property belonging to the company, the interim financial accounts released to the Colombo Stock Exchange yesterday showed.Sales revenue during the three months under review edged down 6 percent Year-on-Year to Rs.1.22 billion, pushing the quarterly gross profit down to Rs.262.9 million compared to Rs.357.6 in the corresponding quarter of the previous year.
According to a company statement, the domestic sales stood at Rs. 916 million as against Rs. 932 for the similar quarter previous year, mainly affected by low demand in the liquor and aerated water segment. The export market sales stood at Rs. 307 million and saw a decrease of 15 percent as against the Rs. 360 million received in the same quarter of the previous year.
However, the company booked a profit of Rs.296.6 million via the disposing of an investment property owned by it during the quarter, against no such gains in the corresponding quarter of the previous year.
Piramal sold 10 acres of the 21-acre idling land it owned in Borupana, Ratmalana for Rs.355 million to a real estate developer last April.
The Earnings per Share for the quarter improved to 38 cents from 15 cents.
Meanwhile, according to the company statement, Piramal Glass has a started more focused market devel- opment in Australia, New Zealand, Mauritius etc., deviating from its export market centralised around India due to the devaluation of the Indian rupee, which has made exports to India very competitive.
“Several new bottles were developed during this quarter for the Australian & New Zealand Market, and we hope the results of same would be seen during the latter part of this year,” Piramal Glass Managing Director and CEO, Sanjay Tiwari said.