Operating profit advanced 4.89% to Rs 342.91 crore as on 30 June 2023 as against Rs 326.91 crore as on 30 June 2022. Operating profit margin stood at 14.39% in Q1 FY24, lower than 18.79% in Q1 FY23.

The overall turnover of value added products remains at Rs 756 crore during the current quarter as compared to Rs. 761 crore in the corresponding period of previous year.

The company has total cash surplus of Rs 951 crore as on 30th June, 2023 as against cash surplus of Rs 738 crore as on 31st March, 2023.

M. P. Taparia, Managing Director, the Supreme Industries, said, “Polymer prices witnessed a downward bias and continue to fall albeit in range bound manner. During the quarter, prices of various polymers fell between 5 to Rs. 8 per kg except for Polypropylene which fell down by Rs.13 per kg causing moderate inventory losses across the product segments of the company.

The company continues to focus more on Made-up product sales from Cross Laminated Film which would help in better realizations and improved profitability. Company's Plan to introduce newly developed Cross Plastic Film is progressing well and plant with a capacity of 2500 MT per annum should be in operation by end of FY 24.

In Industrial Component division, Passenger Vehicle segment in auto sector is continuing its bullish trend and expected to remain positive during the year. Impending festive season and overall positivity in the economy should help the appliance segment of the division gather steam going forward.

The Material Handling Division's product portfolio is doing reasonably well keeping in pace with the major drivers of Material Handling products like Automobile, FMCG, Whitegoods and Retail. To meet the diverse needs of the customers, newer products are being introduced. Supplies of tailor-made solutions with customized crates are growing and most models of garbage bins range have started selling well.

Composite LPG Cylinder division continues to supply new age composite LPG Cylinders to Indian Oil Corporation against its LOI as per schedule being received. It is also pursuing vigorously with other Oil Marketing Companies for promoting Composite Cylinders in domestic market showcasing the safety to human life what they provide. Efforts continue to expand geographical reach and add new customers which is a lengthy process due to nature of the product.

In Protective Packaging Division, strategy to drive growth both in volume and value with enhanced profitability across product lines is yielding positive results. Division continues to focus on development of new applications, value engineering to provide best product with customized solutions and increase its export business by strengthening distribution reach in newer markets.

The Performance Packaging Division of the Company is functioning optimally with its existing capacity. The division serves different market segments in food and various non- food industries and working towards post extrusion value added products for better margins. The Company has a capex plan in excess of Rs. 750 Crores for the current year including carry forward commitments of previous year. Entire Capex shall be funded from internal accruals.

Supreme Industries is India's leading processor of plastic. The company has a diverse product portfolio, comprising piping systems, cross laminated films and products, protective packaging products, industrial moulded components, moulded furniture, storage and material handling products, performance packaging films and composite, and liquefied petroleum gas cylinders. It has 25 facilities across India.

The scrip tumbled 7.90% to Rs 3,358.40 on the BSE.