In Q3 FY24, profit before tax jumped 23.65% to Rs 337.97 crore from Rs 273.32 crore recorded in the same period last year.

Operating Profit stood at Rs 399.66 crore during the quarter, up 20.77% as compared with Rs 330.94 crore posted in Q3 FY23. Operating margin stood at 16.18% in Q3 FY24 as against 14.27% in Q3 FY23.

The company stated that the overall turnover of value added products increased to Rs 853 crore in Q3 FY24 as compared with Rs 826 crore posted in Q3 FY23.

The company has a total cash surplus of Rs 586 crores as on 31 December 2023 as against cash surplus of Rs 738 crore as on 31 March 2023.

On standalone basis, the company’s net profit jumped 27.45% YoY to Rs 247.36 crore in Q3 FY24. Total Income was at Rs 2,481.37 during the quarter registering a growth of 6.47% as compared with Rs 2,330.60 crore posted in Q3 FY23.

During the quarter, revenue from plastics piping products segment was at Rs 1,643.65 crore (up 8.94% YoY), revenue from packaging products segment was at Rs 353.95 crore (up 3.52% YoY), while revenue from industrial products segment came in at Rs 331.95 crore (down 1.15% YoY) and revenue from consumer products segment was at Rs 112.33 crore (down 3.05% YoY).

On the outlook front, M. P. Taparia, managing director, The Supreme Industries, said that Polymer prices have stabilized at an affordable level. Red Sea conflict has disrupted normal business flow. The price volatility may become severe if this conflict becomes more wide spread.

The construction of the company’s fourth plant at Malanpur is going in full speed. It is expected that the plant will be put in operation during the 1st quarter of FY 2024-25. This plant is geared to manufacture Ball valves and Industrial vales.

The company continues its efforts to increase its range of made-up products along with its penetration in the entire country. The company is also putting more resources to reach several international markets to sell its existing variety of cross laminated film products.

The benefits of all these initiatives will be reflected in future business growth. The company’s drive to increase nos. of show rooms has resulted in such number increasing to 298 by end of December 2023 from 244 showrooms at the beginning of the year.

The company has achieved a volume growth of 30% plus in first nine months of the year in its plastic pipe division. The company expects to achieve similar growth for the full year in this segment.

The business scenario in the material handling division remains robust with good demand from fisheries, F&V and dairy segments. Division has also received good orders from the soft drink industry. The introduction of the new dustbin range has received encouraging response and the division should continue its momentum of growth both in volume and value terms.

Newly installed production line of composite LPG cylinders has been successfully established. Execution of old order received from Indian Oil Corporation (IOC) is nearing completion and new enquiries are expected soon. The recent introduction of promotional campaign/activities by IOC has seen increased enquiries for the product. Other two Oil marketing companies are also likely to introduce the product in the market soon. Export enquiries continue to flow but no significant development has yet taken place except repeat orders from existing customers and small quantity orders from new country/customers.

The protective packaging division has been able to develop specialized and customized solutions for its newly acquired customers. Necessary investments are being made to ramp up the capacities to meet the increasing demand. The division is working for more export opportunities and strengthening of internal as well as distribution network is in progress. The Performance Packaging Division is exploring more export opportunities and working on newer applications for better profitability. Its present capacities are optimally utilized and availability of space remains a constraint for further growth plans.

The company remains optimistic for business opportunities and continues to commit more Capex in line with its growth plans. Total commitments including acquisition of business of Parvati Agro Plast and carry forward commitments of previous year may exceed Rs 1,000 crore. However, total cash outflow is not likely to exceed Rs 750 crore for the year and the same shall entirely be funded from internal accruals.

Supreme Industries is engaged mainly in production of plastic products and operate in various product categories like Plastic piping system, cross laminated films & products, protective packaging products, industrial molded components, molded furniture, storage & material handling products, performance packaging films and composite LPG cylinders.