Piramal Glass Q1 net dips 66.28% at Rs 10.63 cr

Glass packaging firm Piramal Glass today reported a 66.28% decline in its consolidated net profit to Rs 10.63 crore for the quarter ended June 30, 2012, mainly on account of increase in manufacturing costs.

The company had posted a net profit of Rs 31.53 crore in the same quarter of the previous fiscal, Piramal Glass Ltd (PGL) said in a statement.

Consolidated net sales of the company rose to Rs 384.80 crore for the quarter from Rs 323.13 crore in the same period a year ago.

Commenting on the results Piramal Glass Director Vijay Shah said: "Our new furnace of 160 TPD is operational since April 2012. Being a new furnace, it is in the process of stabilising and produces a sub-optimal product mix. The combination of these factors has impacted profitability in the short run."

Going forward, as the capacity stabilisation and improvement in product mix are achieved, we will witness improvement in profitability, he added.

During the first quarter of FY13 cosmetic & perfumery (C&P) segment grew 12% and contributed 52% to the total sales. Specialty food & beverage (SF&B) division grew by 19%, while Pharma sales grew by 34%, the company said.

Shares of Piramal Glass today close at Rs 102 on BSE, up 0.54% from its previous close.