Ghani Glass Limited (GHGL) has seen an exceptional start to FY15, according to a recent release.
Growing demand for glass products, resilient cost control measures and recent capacity expansion have provided all the right ingredients for growth.
For the nine months ended March 2015, the glass company showed a solid 15 percent jump in its top line from the same period last year. With a boost from greater glass demand and better production following the commissioning of a new production line the company maintained its sales growth and reported nearly Rs 8.2 billion in revenues in 9MFY15, compared to Rs 7.1 billion in same period during FY14.
The company also reported an impressive improvement in its profitability, making a gross profit of Rs 2,104 million and an after tax profit of Rs 883 million. Management has implemented Cost Reduction Programs (CRPs) at various levels of operations that have been largely successful in controlling expenses. Despite a strong increase in sales, the administrative and distribution costs have declined notably.
Ghani Glass Limited’s gross, operating and net margins for the period were 26 percent, 16 percent and 11 percent respectively, compared to 22 percent, 12 percent and 6 percent during the nine months of FY14. The company has also seen its per-share earnings jump, from Rs 3.76 to Rs 7.16 in 9MFY15.
Over the years, the company has achieved dominant market shares in Pakistan with four modern glass plants in Pakistan producing float glass and container glass with an annual capacity of approx. 300,000 tons. At this time, Ghani is a market leader with float glass at 73 percent, glass pharmaceutical bottles at 90 percent and Foods & Beverages glass containers at percent. As a part of expansion strategy, Ghani Glass has successfully commissioned new project of Parma container glass having a production capacity of 500 million bottles per year in 2014. The group’s glass plants were the first to achieve ISO 9001:2000 and 14001 certifications in Pakistan and they have now been upgraded to ISO 9001:2008 & ISO 14001:2.
Ghani customers include all multinational pharmaceutical and FMCG companies along with major distributors and dealers of float business. The company also export its products to several countries. Companies include Glaxo Smith Kline, Abbot, Sanofi, Pfizer, Novartis, Star, Coca-Cola, National Foods, Pepsi, Mitchells, Unilever, etc.
Ghani Glass Limited has become without a doubt one of the leading brand names in glass and glass related products both in volume and quality. Moving forward, sales of both the float glass and glass bottles will likely be substantial in the future. Notably, the demand for float glass will certainly increase mainly due to the public development under PSDP, as well as growing private sector construction. Production of glass bottles is also expected to increase after the recent performance of FMCG, and the pharmaceutical industries. The merging of Techno Glass Industries Ltd into Ghani Glass Ltd will also add the value to Ghani Glass Limited. The current decline in fuel prices will also add to the positive current business environment.