Piramal Glass results Profitable, swing from a loss to Rs113million profit

Date: 28 January 2010
Source: BSE India
Piramal Glass Limited continues its growth momentum in Q3 FY2010; Operating Profit up by 46.4% to Rs. 625.0 million; Net Profit swing from loss of Rs. 382.9 million to profit of Rs. 113.0 millionConsolidating its turnaround, Piramal Glass Limited, (PGL) (NSE: PIRGLASS, BSE: 532949), today reported substantial growth in third quarter (Q3) results for FY2010.

PGL, a Piramal Group company is a leading global manufacturer of flaconnage (glass containers) for Cosmetics & Perfumery, Specialty Food & Beverages and Pharmaceutical industry. Consolidated sales for the quarter ended 31 December 2009 was up by 4.4% over Q3 FY2009to Rs. 2.8 billion.

The operating profit grew by 46.4% to Rs. 625.0 million and Operating Profit Margin (EBITDA Margin) was higher at 21.8% against 15.5% in Q3 FY2009. Net Profit for the period was Rs. 113.0 million against Net Loss of Rs. 382.0 million for the same period last year. This quarter marks a turnaround of USA operations. For the nine months ended December 2009, total sales on consolidated basis was up by 9.8% to Rs. 8.2 billion over 9M FY2009. Operating Profit was up to Rs. 1.7 billion as compared to Rs. 1.2 billion in 9M FY2009. Operating Profit Margin for the nine months was higher at 20.4% against 16.1% in 9M FY2009. Net Loss was at Rs. 89.7 million as compared to Rs. 665.6 million during the same period last year. Reiterating the group’s commitment, Mr. Ajay Piramal, Chairman, Piramal Group said, “It has been a remarkable turnaround. The investments that we have made in the last 3-4 years are now fructifying. With global leadership in mass segment of C&P, PGL is fast emerging as significant player in the premium segment.

In the last couple of years, all our manufacturing assets have been approved after stringent audit norms by top perfumery manufacturers like P&G, LVMH, Yves Rocher, Coty. PGL is the only player from Asia approved by these companies. We are confident of the performance in coming quarters as well.” Mr. Vijay Shah, Managing Director Piramal Glass said, “This quarter provides testimony to the fact that PGL’s momentum is here to stay. While we witnessed a turnaround last quarter, this quarter strengthens our belief that PGL can and will continue growing. EBITDA margins in the quarter improved by 630 basis points mainly led by product mix improvement and stringent cost cutting measures especially in USA. C&P premium rose from 30% of our C&P sales to 45% of sales. We have maintained our leadership position in both colour cosmetic and mass segment with a market share of 35% and 12% globally.”

The company operates in three major business segments – Cosmetics & Perfumery, Specialty Food and Beverages (SF&B) and Pharmaceuticals. For the quarter ended December 2009, the sales from Cosmetic & Perfumery (C&P) division grew by 11.8% at Rs. 1.2 billion.

Pharma division recorded sales of Rs. 839.8 million in Q3 FY2010 as compared to Rs. 938.0 million in Q3 FY2009. The Company’s Specialty Food and Beverage (SF&B) continued to record strong growth and grew by 13.1% to Rs. 768.7 million. The strong demand for PGL’s products from Sri Lanka facility resulted in to 137.0% higher export revenues for the quarter led growth in SF&B.

During the quarter, revenues of the Company’s US subsidiary – Piramal Glass USA Inc. grew by 13.8% to Rs. 914.4 million. Operating Profit at (EBITDA) was higher at Rs. 88.4 million in Q3 FY2010 against Operating Loss of Rs. 81.4 million in Q3 FY2009. This is the first time since acquisition of US subsidiary, Company has reported positive Operating margin of 9.5% against negative 10.4% in Q3 FY2009. The Company has reported significant turnaround with Net Profit of Rs. 14.8 million against Net Loss of Rs. 157.3 million during the same period last year.

For the nine months ended December 2009, PGL’s C&P division grew by 6.0% to Rs. 3.5 billion. The Pharma division registered sales of Rs. 2.5 billion as compared to Rs. 2.6 billion in 9M FY2009. SF&B business continued to maintained growth momentum and registered impressive growth of 37.6% over 9M FY2009 to Rs. 2.2 billion because of the 210.0% huge jump in exports from Sri Lanka. Similarly, Piramal Glass USA Inc. recorded strong sales of Rs. 2.6 billion against Rs. 2.5 billion during 9M FY2009. This is the first time Operating margin swung by 8.9% and has turned positive to Rs. 171.2 million against negative of Rs. 60.1 million during the same period last year. Net Loss was at Rs. 85.8 million as compared to Rs. 244.8 million in 9M FY2009. This is an earmarked history that PGL has experienced during the year. It is noteworthy here that Piramal Glass moved back to profits in Q2 FY2010 after 15 consecutive quarters of Net Losses and is on track to beating the guidance set at the beginning of the financial year.

600450 Piramal Glass results Profitable, swing from a loss to Rs113million profit glassonweb.com
Date: 28 January 2010
Source: BSE India

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