Performance for 12 months ended Mar 19

For 12 months ended Mar 19, net sales were up by 13% to Rs 5611.99 crore. OPM was lower by 280 bps to 13.0% thus resulting in OP fall of 7% to Rs 730.57 crore. There was profit from construction business of Rs 54 crore as compared to Nil for 12 months ended Mar 18, thus, OP after considering the profit from construction business stood at Rs 784.57 crore flat on YoY basis. Other income stood at Rs 7.78 crore up by 124% YoY. After providing interest and depreciation of Rs 26 crore and Rs 183.54 crore, up by 26% and 10% respectively, PBT before EO for 12 months ended Mar 19 stood at Rs 582.81 crore down by 3% YoY. There was an EO income of Rs 67.19 crore pertaining to profit from divestment of Khushkheda unit. Thus PBT after EO stood at Rs 650 crore up by 8% YoY. After providing total tax of Rs 215.75 crore up by 5% YoY and share of profit from associate of Rs 14.38 crore, PAT for 12 months ended Mar 19 stood at Rs 448.63 crore up by 4% YoY.

Mr. M.P. Taparia, Managing Director, The Supreme Industries Limited, said:

The various initiatives taken by the Central and State Governments have started showing fruitful outcome in the year. The focus on construction of affordable houses, effective implementation .of RERA, Swachha Bharat Mission, Amrut Yojana and other infrastructure building activities are enabling the Company to grow its Plastics Piping System Business. With an expected growth in the businesses of several verticals, the Company took steps to put new production units and also expand capacity in several of it's existing units. All the investment plans have fructified or are fructifying by June 2019 within the planned investment and time frame.

The raw material availability was adequate and affordable. The PVC prices in the first ten months maintained upward bias. Suddenly the prices dropped in March by 12.5% in five week times. This resulted in steep inventory loss in the working of the Company for the year eroding it's operating margin to some extent. The prices of other Polymers have improved to some extent from their lowest level. The Company converts mostly commodity plastics where prices have tendency to remain volatile. However, for the current year, the Company expects Polymer prices to remain affordable. Availability of raw material is also going to remain adequate. When the GST was introduced it was expected that informal sector may graduate faster to move to formal sector. However, pace of moving to formal sector by informal players is quite slow. ·

The Company remains committed to increase its export turnover. The Company participated last year in 20 international Exhibitions for it's various products. This has boosted its export turnover from$ 16.93 million to $ 23.05 million. Company continues to work aggressively to boost it's export business by intensive marketing and making investments in products which can generate larger growth in export business. ·

During FY 20, the company expects to attain turnover in the range of Rs 6100 crore to Rs 6250 crore with estimated operating margins of around 13.5-15%.

During the current year i.e. 2019-20, the Company envisages Capex in the range of about Rs. 300-350 crores, mainly on the following:

• Putting Moulding shop at Kharagpur complex

• Establishing capacity to manufacture PVC Pipe SystemjHDPE Pipe System/CPVC Pipe SystemjPEX Piping system at Jadcherla ·

• Expanding Roto Moulding Capacity at Jadcherla

• Putting another unit at Puducherry new site to increase Bath fitting capacity

• Adding several varieties of Injection Moulding and Blow moulded furniture in the Company's range of furniture

• Installing additional equipment to increase production of XL Bonded XF film at It's Silvassa and Get Muvala Units.

• Increasing PVC Pipe manufacturing capacity at Kanpur·Dehat Unit

• To add innovative fabricating machines to produce several varieties of new fabricated products from XF film.

• To add end of the line fabrication machines for performance packaging films.

• To install balancing machines in Protective Packaging Division

• To increase capacity at Gadegaon and replace certain old machines at Lalru plant and to invest in moulds for increased product range in Material Handling Products

• To expand capacities in Industrial Product Division at Ghiloth and Chennai Moulding unit

The Company sold 397983 MT of Plastic goods during the year under review against sales of 371176 MT achieving volume growth of about 7%.

The overall turnover of value added products increase to Rs. 1944 crore as compared to Rs.1734 crore in the previous year achieving growth of 12%.

Total Borrowing of the Company stands at Rs. 162 crore as on 31st March, 2019 as against Rs. 248 crore as on 31st March, 2018. Average Net Borrowing level during the current year remained at Rs 266 crore against Rs. 336 crore in the previous year. Average Cost of Borrowings as on 31st March, 2019 increased to 8.23%. Total Debt-Equity ratio as on 31st March, 2019 came down to 0.08 times as against 0.14 times as on 31st March, 2018.