Gross Profits for Q1 FY2011 increased by 30 percent to Rs. 227.5 million over Rs. 175.6 million in Q1 FY2010. Gross Profit Margin in Q1 FY2011 increased to 26 percent from 22 percent in corresponding period last year.
According to Sanjay Tiwari, CEO & Executive Director, "Net Sales for the quarter ended 30 June 2010 grew by 8.6 percent to Rs. 868.2 million over Rs. 799.8 million in Q1 FY2010. Gross profits were up by 30 percent to Rs.227.5 million, while the Net profit for the period was Rs.53.2 million as compared to a loss of Rs.118.7 million for the same period the previous year".
The Company was happy to notice the continuous growth of the domestic market. The Domestic market grew by 30 percent to Rs.621 million as against Rs.476 million in the similar period previous year. The post-war peaceful environment together with the opening up of the North and East now seems to have paid dividends with all segments of bottle sales showing an upward trend. The Company continues to focus and build its position in the export market. The export volumes comprised almost 34 percent of its total sales volume during this quarter.
The manufacturing process has stabilised and started yielding better efficiencies. The company now performs with a capacity utilisation of over 90 percent.
The productivity indicators have also vastly improved over the last year which has contributed to 18percent more glass tonnage being produced when compared to the same period in the previous year.
A distinct reduction has been achieved in the interest cost. The interest cost was down by 55 percent to Rs. 86 million as against Rs. 194 million during the corresponding period of the previous year.
This reduction was due to the restructuring of part of the long term loan to a foreign currency loan, as well as the general decrease of the interest rates.
The company is confident about its future prospects with the order book filled with the growing domestic demand as well as established exports.
The 21 acre extent of land at Ratmalana where the factory was earlier situated is an investment property to be unlocked in value terms.
With the land markets regaining its strength in the market, the management is confident about unlocking its value and part settling the long term loan which will further reduce interest costs.
The company continues with its simple yet steadfast objective of fully serving the domestic market which is well on its way to recovery as well as increasing the business in the specialized liquor and beverage segment in the international markets, thus realizing its vision of being, "The most preferred Speciality Glass Packaging solutions provider in Asia by meeting customer expectation through innovative designs and manufacturing".
source - www.island.lk
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