Financial Times - Ceylon Glass profits hit by rising energy costs

Ceylon Glass profits hit by rising energy costs

Escalating energy cost, leading to an overall increase in costs of production over 17% over the previous year, has adversely affected the bottom line at Ceylon Glass Co Ltd (CGCL), the company said in releasing its first quarter to June 30 results.

It reported sales worth Rs 426 million and post tax profits of Rs 38 million against last year first quarter results of Rs 278 million and Rs 24 million, respectively.

The steep hike in fuel prices during this period, adversely affected the cost of all input material, the statement said adding however that the company has embarked on several cost saving initiatives that have helped to minimize the impact partially.

Sanjay Tiwari, Director/CEO of the company, said turnovers rose by 53% while Ceylon Glass also ventured into international markets and increased its business against the previous year. Due to severe capacity constraint the full demand of exports could not be catered, he said,

The company has begun a major expansion under BOI’s 300 Enterprises Programme investing in a new furnace at a cost of approximately Rs 2 billion, which will not only double the capacity but will also enable the company to enter the high end designer products for international market and increase flexibility for domestic market .

CGCL is a 54% owned subsidiary of Gujarat Glass Private Limited, India (GGPL), part of the Piramal Group.

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