The total turnover showed a growth of 6% from Rs. 4,817 mn to Rs. 5,108 mn. This was contributed by 7% growth in domestic sales from Rs. 3,888 Mn to Rs. 4,149 Mn and 3% increase in export sales of Rs. 929 mn from Rs. 959 mn. During the year, the company’s export portfolio has showed a marked increase in its sales to USA.
The Profit Before Tax for the nine months period was Rs. 352 mn as against Rs. 576 mn in the corresponding period in the previous year.
The major reasons for lower profitability are; long term loan interest cost has yet again started rising from this quarter onwards due to the long term loan of Rs. 3 bn obtained for the relining, the plant was inoperative for two months due to relining and hence major portion of the domestic sale being done through trading.
Though margins are low we were compelled to resort to trading to ensure continuity of supply to our customers and the continuous upward trend of LPG prices has a major impact on the cost of production. The company’s current LPG prices are linked with Saudi Aramco and forex rates (USD to Rupees).
For Q 3 ended on December 31, 2016, the sales were Rs. 1,979 Mn which is an 11% growth over the previous year’s similar period turnover of Rs. 1,778 Mn. During the Quarter the domestic market showed a growth of 12% from Rs. 1,391 Mn to
Rs. 1,563 Mn whilst the export market growth was 8% from Rs. 387 Mn to Rs. 416 Mn. All sectors contributed positively whilst the food & beverage segment continued to dominate the sale.
This is the first quarter in operation after the company plant shutdown of 2 months for its capacity enhancement and upgradation.