OPM rose 320 basis points to 16.1% which saw OP rose 26% to Rs 220.9 crore. Other income fell 88% to Rs 80 lakh and interest cost rose 20% to Rs 5.65 crore. As depreciation grew 13% to Rs 51.54 crore, PBT fell 24% to Rs 164.54 crore. Tax provision fell 9% to Rs 41.91 crore compared to tax provision of to Rs 46.16 crore. PAT rose 42% to Rs 122.63 crore.

Profit in JV was Rs 0.76 crore compared to loss of Rs 5.23 crore in Q3FY19. Finally net profit rose 52% to Rs 123.39 crore.

9MFY 2020 consolidated results

In 9MFY 2020, sales grew 2% to Rs 4081.05 crore. The company sold 308321 tonne of plastic goods against sales of 284062 tonne achieving volume and product value growth of about 9% and 2%, respectively.

OPM rose 70 basis points to 13.7% which saw OP rose 8% to Rs 561.1 crore. Profit from the construction business was nil compared to Rs 53.1 crore in 9MFY19. OP including construction business was down 2% to Rs 561.12 crore.

Other income fell 89% to Rs 1.37 crore and interest cost fell 13% to Rs 15.98 crore. As depreciation grew 13% to Rs 152.81 crore, PBT before EO fell 9% to Rs 393.7 crore.

EO gains were nil compared to Rs 55.88 crore. Thus PBT after EO fell 19% to Rs 393.7 crore.

As tax fell 59% to Rs 67.82 crore, PAT rose 1% to Rs 325.88 crore.

Profit in JV rose 637% to Rs 24.24 crore. Finally net profit rose 8% to Rs 350.12 crore.

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

The bearish trend in raw material prices has come to halt. From the lowest level there is an increase in prices of all kind of polymers. The lower prices have increased the polymer consumption in the country by around 7% in the nine months of this year. The increased prices continue to remain affordable.

The demand growth for Plastic Piping System is encouraging. In October - December quarter, growth was low due to both major festivals were in October and the rainfall extended upto first week of November. The demand growth came back by second half of November.

With the prospect of increased demand, the company has stepped up its' investment commitment and plans to commit a sum of around Rs. 500 crore in the current year. It is expected that all the investments will go in production one after another by March 2021.

Principal investment will be to put PVC Pipe plant and PEX Pipe plant and HDPE Fittings at Jadcherla, PVC Fitting plant at Kharagpur and to put up a Pipe complex at a new site in Orissa.

The demand for Performance Packaging Film, Protective Packaging Products and Furniture remains normal. The demand for Industrial Components and Cross laminated film products remains subdued. The company continues to execute small orders for Composite Cylinder in International market.

Other details

Average borrowings of the company for the nine months ended 31st December, 2019 was Rs. 223 crore as against Rs. 259 crore for the corresponding period of previous year. Average Cost of Borrowings as on 31st December, 2019 is at 7.10 % p.a. as compared to 8.23% p.a. as on 31st March, 2019.

The stock trades at Rs 1321.