Capitaline

Results 29-Apr-22

Analysis

Supreme Industries

NP down 28% on 920 bps erosion in OPM

Supreme Industries consolidated net sales increased 22.78% to Rs 2557.09 crore in Q4FY22 compared to Q4FY21. Sales of Plastics Piping Products segment has gone up 33.64% to Rs 1,799.73 crore (accounting for 70.38% of total sales). Sales of Industrial Products segment has gone up 2.45% to Rs 300.28 crore (accounting for 11.74% of total sales). Sales of Packing Products segment rose 2.98% to Rs 318.97 crore (accounting for 12.47% of total sales). Sales of Consumer Products segment has gone down 4.84% to Rs 118.00 crore (accounting for 4.61% of total sales). Sales of Others segment has gone up 119.54% to Rs 20.11 crore (accounting for 0.79% of total sales).

Operating profit margin has declined from 24.47% to 15.31%, leading to 23.20% decline in operating profit to Rs 391.43 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 59.11% to 70.42%. Purchase of finished goods cost fell from 1.57% to 1.48%. Employee cost decreased from 4.55% to 3.56%. Other expenses fell from 9.84% to 9.12%. Power and Oil fuel cost fell from 2.68% to 2.42%.

Other income rose 4.50% to Rs 8.6 crore. PBIDT fell 22.76% to Rs 400.03 crore. Provision for interest fell 62.10% to Rs 1.88 crore.

PBDT fell 22.38% to Rs 398.15 crore. Provision for depreciation rose 7.34% to Rs 58.82 crore. Profit before interest, tax and other unallocable items (PBIT) has slumped 27.11% to Rs 339.57 crore. PBIT of Plastics Piping Products segment fell 27.48% to Rs 258.91 crore (accounting for 76.25% of total PBIT). PBIT of Industrial Products segment fell 19.43% to Rs 31.44 crore (accounting for 9.26% of total PBIT). PBIT of Packing Products segment fell 17.43% to Rs 33.69 crore (accounting for 9.92% of total PBIT). PBIT of Consumer Products segment fell 49.37% to Rs 14.50 crore (accounting for 4.27% of total PBIT). PBIT of Others segment rose 164.10% to Rs 1.03 crore (accounting for 0.30% of total PBIT).

PBIT margin of Plastics Piping Products segment fell from 26.51% to 14.39%. PBIT margin of Industrial Products segment fell from 13.31% to 10.47%. PBIT margin of Packing Products segment fell from 13.17% to 10.56%. PBIT margin of Consumer Products segment fell from 23.10% to 12.29%. PBIT margin of Others segment rose from 4.26% to 5.12%. Overall PBIT margin fell from 22.37% to 13.28%.

Profit before tax down 25.93% to Rs 339.33 crore. Share of profit/loss was 1.04% lower at Rs 69.61 crore. Provision for tax was expense of Rs 85.08 crore, compared to Rs 78.1 crore. Effective tax rate was 20.81% compared to 14.78%.

Net profit attributable to owners of the company decreased 28.09% to Rs 323.86 crore.

Promoters’ stake was 48.85% as of 31 March 2022 compared to 48.85% as of 31 March 2021.

Full year results analysis

Net sales of Supreme Industries have increased 22.31% to Rs 7772.82 crore. Sales of Plastics Piping Products segment has gone up 23.11% to Rs 5,045.99 crore (accounting for 64.92% of total sales). Sales of Industrial Products segment has gone up 34.50% to Rs 1,023.67 crore (accounting for 13.17% of total sales). Sales of Packing Products segment rose 16.91% to Rs 1,210.11 crore (accounting for 15.57% of total sales). Sales of Consumer Products segment has gone up 14.36% to Rs 405.09 crore (accounting for 5.21% of total sales). Sales of Others segment has gone down 17.03% to Rs 87.96 crore (accounting for 1.13% of total sales).

Operating profit margin has declined from 20.21% to 15.98%, leading to 3.28% decline in operating profit to Rs 1,242.11 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 60.66% to 67.99%. Purchase of finished goods cost fell from 2.07% to 1.71%. Employee cost decreased from 5.00% to 4.32%. Other expenses fell from 11.57% to 10.42%. Power and Oil fuel cost fell from 3.20% to 2.67%.

Other income rose 18.12% to Rs 19.95 crore. PBIDT fell 3% to Rs 1262.06 crore. Provision for interest fell 76.64% to Rs 5.15 crore. Loan funds rose to Rs 45.68 crore as of 31 March 2022 from Rs 37.67 crore as of 31 March 2021. Inventories rose to Rs 1,260.16 crore as of 31 March 2022 from Rs 760.76 crore as of 31 March 2021. Sundry debtors were higher at Rs 466.81 crore as of 31 March 2022 compared to Rs 389.90 crore as of 31 March 2021. Cash and bank balance declined from Rs 768.39 crore as of 31 March 2021 to Rs 526.40 crore as of 31 March 2022. Investments rose to Rs 475.89 crore as of 31 March 2022 from Rs 336.59 crore as of 31 March 2021 .

PBDT fell 1.73% to Rs 1256.91 crore. Provision for depreciation rose 7.86% to Rs 229.52 crore. Fixed assets increased to Rs 1,915.43 crore as of 31 March 2022 from Rs 1,752.94 crore as of 31 March 2021. Intangible assets declined from Rs 12.36 crore to Rs 7.62 crore.

Profit before interest, tax and other unallocable items (PBIT) has slumped 5.55% to Rs 1,032.57 crore. PBIT of Plastics Piping Products segment fell 4.56% to Rs 783.88 crore (accounting for 75.92% of total PBIT). PBIT of Industrial Products segment rose 34.35% to Rs 85.26 crore (accounting for 8.26% of total PBIT). PBIT of Packing Products segment fell 19.01% to Rs 100.91 crore (accounting for 9.77% of total PBIT). PBIT of Consumer Products segment fell 9.37% to Rs 54.07 crore (accounting for 5.24% of total PBIT). PBIT of Others segment fell 65.13% to Rs 8.45 crore (accounting for 0.82% of total PBIT).

PBIT margin of Plastics Piping Products segment fell from 20.04% to 15.53%. PBIT margin of Industrial Products segment fell from 8.34% to 8.33%. PBIT margin of Packing Products segment fell from 12.04% to 8.34%. PBIT margin of Consumer Products segment fell from 16.84% to 13.35%. PBIT margin of Others segment fell from 22.85% to 9.61%. Overall PBIT margin fell from 17.20% to 13.28%.

Profit before tax down 3.64% to Rs 1,027.39 crore. Share of profit/loss was 40% higher at Rs 204.39 crore. Provision for tax was expense of Rs 263.33 crore, compared to Rs 234.08 crore. Effective tax rate was 21.38% compared to 19.31%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company decreased 0.99% to Rs 968.45 crore.

Equity capital stood at Rs 25.41 crore as of 31 March 2022 to Rs 25.41 crore as of 31 March 2021. Per share face Value remained same at Rs 2.00.

Promoters’ stake was 48.85% as of 31 March 2022 compared to 48.85% as of 31 March 2021 .

Cash flow from operating activities decreased to Rs 470.43 crore for year ended March 2022 from Rs 1,246.37 crore for year ended March 2021. Cash flow used in acquiring fixed assets during the year ended March 2022 stood at Rs 469.94 crore, compared to Rs 226.61 crore during the year ended March 2021.

The stock trades at Rs 1949.

Supreme Industries: Consolidated Result
Particulars	2203 (03)	2103 (03)	Var. (%)	2203 (12)	2103 (12)	Var. (%)
Sales	2557.09	2082.73	23	7772.82	6355.20	22
OPM (%)	15.3	24.5		16.0	20.1
OP	391.43	509.67	-23	1242.11	1279.18	-3
Profit from construction business	0.0	0.0		0.00	5.00
OP including construction business	391.43	509.67	-23	1242.11	1284.18	-3
Other inc.	8.60	8.23	4	19.95	16.89	18
PBIDT	400.03	517.90	-23	1262.06	1301.07	-3
Interest	1.88	4.96	-62	5.15	22.05	-77
PBDT	398.15	512.94	-22	1256.91	1279.02	-2
Dep.	58.82	54.80	7	229.52	212.79	8
PBT before Share of profit of Associates	339.33	458.14	-26	1027.39	1066.23	-4
Share of profit of Associates	69.61	70.34	-1	204.39	145.99	40
PBT before EO	408.94	528.48	-23	1231.78	1212.22	2
EO	0.00	0.00		0.00	0.00
PBT after EO	408.94	528.48	-23	1231.78	1212.22	2
Total Tax	85.08	78.10	9	263.33	234.08	12
PAT	323.86	450.38	-28	968.45	978.14	-1
EPS (Rs) *	#	#		76.2	77.0
* Annualised on current equity of Rs 25.41 crore. Face Value: Rs 2 each
# EPS not annualised due to seasonality of business
EO: Extra Ordinary items, EPS is calculated after excluding EO and relevant tax
Figures in Rs crore, Var (%) exceeding 999 is restricted to 999
Source: Capitaline Database

Supreme Industries : Consolidated Segment Results
	% of (Total)	2203 (03)	2103 (03)	Var.(%)	% of (Total)	2203 (12)	2103 (12)	Var.(%)
Sales
Plastics Piping Products	70	1,799.73	1346.75	34	65	5,045.99	4,098.79	23
Industrial Products	12	300.28	293.09	2	13	1023.67	761.12	34
Packaging Products	12	318.97	309.73	3	16	1210.11	1035.06	17
Consumer Products	5	118	124	-5	5	405.09	354.21	14
Others	1	20.11	9.16	120	1	87.96	106.02	-17
Total Reported Sales	100	2,557.09	2,082.73	23	100	7,772.82	6,355.20	22
PBIT
Plastics Piping Products	76	258.91	357.01	-27	76	783.88	821.29	-5
Industrial Products	9	31.44	39.02	-19	8	85.26	63.46	34
Packing Products	10	33.69	40.8	-17	10	100.91	124.59	-19
Consumer Products	4	14.5	28.64	-49	5	54.07	59.66	-9
Others	0	1.03	0.39	164	1	8.45	24.23	-65
Total PBIT	100	339.57	465.86	-27	100	1032.57	1093.23	-6
Less : Interest		1.88	4.96	-62		5.15	22.05	-77
Add: Other un-allcoable		71.25	67.58	5		204.36	141.04	45
PBT		408.94	528.48	-23		1231.78	1212.22	2

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