Supreme Industries conducted conference call on 22nd October 2021 to discuss the financial results and performance of the company for the quarter ended Sep'21. Mr. M. P. Taparia- Managing Director, Mr. P.C. Somani- Chief Financial Officer (CFO) and Mr. R.J. Saboo – VP (Corporate Affairs and Company Secretary) of the company addressed the Concall.

Highlights of the Concall

• The company sold 102673 tonne of plastic goods and achieved net product turnover of Rs. 1901 crore during Q2FY22 against sale of 94836 tonne and net product turnover of Rs. 1322 crore in the corresponding quarter of previous year resulting in volume growth of about 8% and value growth of about 44%.

• Plastic Piping System grew 9% in volumes to 72480 tonne and grew by 50% in value terms to Rs 1267 crore in Q2FY22.

• Industrial Products grew 9% in volumes to 12390 tonne and 40% in value terms to Rs 253 crore in Q2FY22.

• Packaging Products grew 5% in volumes to 12905 tonne and 26% in value terms to Rs 277 crore in Q2FY22.

• Consumer Products grew 4% in volumes to 4898 tonne and 31% in value terms to Rs 111 crore in Q2FY22.

• The overall turnover of value added products increased to Rs. 758 crore during the current 2nd quarter as compared to Rs. 533 crore in the corresponding period of previous year achieving growth of 42%.

• The company has cash surplus funds of Rs. 331 crore as on 30th Sep, 2021 as against cash surplus funds of Rs. 759 crore as on 31st March, 2021

• The company saw revival of business in all the segments serviced by the company as the effect of second wave of Covid -19 started ebbing down.

• The company had volume growth in all its segments despite continuous rise in all grades of polymer prices. The polymer prices have risen between 7-28% during this quarter. Highest increasewas in the price of PVC resin, where prices have gone by Rs.34 per kg. The price increase trend continues unabated in the current quarter also.

• In plastics pipe segment, the demand from housing segment has revived. The company had around 9% volume growth in pipe system in the quarter. In spite of current high price, the demand outlook in housing and agri segment looks maintainable. There is a shift in higher demand for CPVC system as the prices of that system have not gone high compared to PVC system.

• The company's progress in putting up plants at Guwahati, Cuttack and Erode are moving smoothly. All these plants will be operational between January 2022 to May 2022. The company's envisaged capex plant of Rs 521 crore for the year including carried forward commitment of previous year is going on smoothly.

• The company is also adding new systems over and above it's existing 36 system in plastic pipe system, during this financial year for which the investment plan is going smoothly.

• The demand for Tarpaulins and made up products made from XF film is maintained at higher level. The company is able to pass the increased raw material prices to it's end product.

• Furniture business has gone up by around 4% in volume in the quarter. The vompany has launched new models successfully.

• Industrial component business has grown in the quarter despite shortage of chip with a promising future for second half of the year.

• Material handling division has shown 16% volume growth. The company continues to add new product range to add value to it's customers. It continues deepen it's market reach.

• Composite cylinder division has shown surplus in the quarter after several years of it's operations. The increased acceptance of this Cylinder from domestic and international markets augurs well for this segment in future.

• The company had a volume growth of 3% in protective packaging division and 10% in performance packaging film in the quarter.

• The company's focus is to boost export business in packaging segment and develop new applications laminating with different substrates to add increased value for it's customers. The company is solution provider to protect the content by innovative packaging.

• Several new varieties of products have been launched in Bath fittings division. The appointments of new dealers are continuing. The business is growing. The company expects to reach Rs. 75 crore business in this division, this year.

• PVC has gone into supercycle mode because not much of capacity in coming up in PVC. Indian is dependent on 55% of imports of PVC. The company expects PVC prices to go up further higher upto December quarter.

• The company expects volume growth of around 3-4% in FY22