HNG Dec net down 5% at Rs 31 cr; to hike prices

Hindusthan National Glass & Industries today posted a 4.8% decline in its net profit at Rs 31.4 crore for the quarter ended December 31, 2010 over the same period last fiscal.

The Kolkata-based glass manufacturer, which is part of the Somany Group, had a net profit of Rs 33 crore in the quarter ended December 31, 2009.

With its margins under pressure, the company said it is planning for another round of price hike this month to offset the rising input cost.

"Profits have been partially affected in this quarter by the incessant rise in power and fuel cost and soda ash prices," the company said in a statement.

During the quarter under review, the company's net sales increased by 14% to Rs 399 crore from Rs 351 crore in the corresponding period last year.

"The sector has been affected by the increase in energy cost and packaging materials...Another price increase is expected to be in place with effect from February, 2011," Hindusthan National Glass & Industries Chief Financial Officer Laxmi Narayan Mandhana said.

The company said it increased the prices of its products by around 6-7% in August last year.

Besides, the firm is also looking at expanding its production capacity to meet the growing demands of glasses.

"We plan to double our existing capacity of 2,825 tonnes per day (TPD) to 5,975 TDP in the next 3 years through both greenfield and brownfield expansions, in order to meet this demand," Mandhana said, adding the demand for container glass is growing at healthy 10-12%.