Mumbai: Mumbai-based Piramal Glass Ltd, the glass bottle manufacturing company of the Ajay Piramal group, on Wednesday reported net profit of Rs23.4 crore for the quarter ended September, up from Rs0.6 crore a year ago.
The company, which was in debt after some foreign acquisitions, made a turnaround in the fiscal ended March 2010. The company’s sales grew 26% during the September quarter to Rs70 crore.
“Our continued focus on the high-end category comprises of cosmetics and perfumery is generating persistent growth and profits,” said Vijay Shah, managing director, Piramal Glass.
Piramal Glass currently caters to three segments: cosmetics and perfumery, speciality foods and beverages, and pharmaceuticals. However, it will now reduce its exposure to pharmaceutical industry and increasingly shift focus to the cosmetics and perfumery space, Shah said.
“We are significantly reducing our business focus from pharma segment and shifting to cosmetics,” he said, attributing the move to the fact that PET bottles have grabbed a major share of the domestic drug industry, leading to slow growth for glass products.
The perfumery unit is the largest contributed to revenue with 49%., while the pharma part contributes about 30%.
While the company will continue to export to a select client base in the pharma space, it remains to be seen how the transition to PET bottles will pan out in the domestic space, Shah said.
As part of the shift in focus, the company is also planning to set up two new manufacturing plants near its existing facility in Gujarat to increase capacity in order to supply to the perfumes and cosmetics market. The cosmetics segment grew by 15% during the September quarter, Shah said.
Group chairman Ajay Piramal said the company currently had a “robust order book” and a higher demand than what existing capacity could cater to.
“Suppliers are increasingly looking at Asian companies given the cost advantages we offer,” he said, adding that the company continued to be open to acquisitions. Around 75% of the company’s revenue is currently from global markets.
On Wednesday, the company informed stock exchanges that it will delist from the Ahmedabad Stock Exchange, but will continue on the Bombay Stock Exchange and the National Stocl Exchange. Shares of Piramal Glass rose 1.90% to close at Rs 136.75 on the BSE on Wednesday, while the bellwether Sensex slid 1.07% to 20,005.37 points.