Consolidated Performance for the quarter ended June'14

For quarter ended June'14, consolidated net sales of Supreme Industries stood at Rs 1255.60 crore, up by 20% YoY. The company sold 86818 MT of plastic goods in June'14 as compared to 79729 MT for June'13 quarter, thus almost a 9% rise in volume. Profit from construction business during the quarter stood at Rs 15.36 crore as compared to Rs 9.98 crore for June'13 quarter. Raw material costs as a % to net sales net of stock adjustment, was down by 120 bps at 60%. Employee costs and other expenditure as a % to net sales net of stock adjustment were up by 50 bps and 40 bps respectively to 5.9% and 11.8%. Thus OPM was down by 150 bps to 16.5% restricting the OP growth to 11% to Rs 206.96 crore.

Other income stood at Rs 1.03 crore as compared to loss of Rs 0.28 crore for June'13 quarter. Interest costs was up by 31% to Rs 17.43 crore and depreciation was up by 13% to Rs 27.48 crore, thus PBT stood at Rs 178.44 crore, up by 12% YoY. Total tax was up by 13% to Rs 61.27 crore. There was a profit from associate company of Rs 2.26 crore as compared to a profit from share of associate company of Rs 3.81 crore for June'13 quarter, thus leading to a 10% increase in consolidated PAT for June'14 quarter to Rs 119.43 crore on YoY basis.

Consolidated Performance for the year ended June 2013

The net sales have increased by 18% to Rs 3403.98 crore. The company has processed 281452 MT of polymers, a growth of 15% and recorded net product turnover of Rs 3228.32 crore, growth of 18%.

OPM has increased by 63 bps to 15.4% due to decline in employee cost by 30 bps to 3.7% and other expenditure by 70 bps to 10.3% of adjusted net sales. As a result, the operating profit excluding construction business has increased by 23% to Rs 525.65 crore. The sales from construction business for the year stood at s 9.98 crore.

The interest cost has decreased by 4% to Rs 52.53 crore, whereas the depreciation increased by 13% to Rs 81.71 crore. The profit before tax stood at Rs 401.41 crore, a rise of 16%.

The total tax outgo stood at Rs 132.99 crore, rise of 16%. The effective tax rate stood at 33.13%. The net profit after considering share of profit from associates has increased by 20% to Rs 290.1 crore.

The scrip is trading at around Rs 585 on BSE.

The promoters holding in the company is at 49.69% and none of them are pledged.

Other developments

The company commissioned the state of art plant to manufacture Composite LPG Cylinders from July'14 onwards. It has started executing its first export order of 50000 cylinders from South Korea. Shipment against first order of 11880 cylinders has already commenced and likely to get complete by Aug'14.

The company has incurred capex of about Rs 165 crore during 12 months ended June'14 and most of the capex incurred is now on the ground. Further the company envisages capex of about Rs 200 crore for setting up its plastic product complex at Kharagpur (West Bengal) for protective packaging products and PVC and Pipe Production facility, for rotormoulding and blow moulding facility to make varieties of plastic products, to start electroplating unit at Puducherry for chrome plate of bath room fitting and accessories, to introduce several additional varieties of pipe fitting and bath fittings, to install additional injection moulding machine at Jalgaon and Malanpur, to augment premium range of furniture with new design products ad to automate remaining plats at Jalgaon and to replace additional injection moulding machines by new energy efficient machines and other balancing equipments for better production efficiency in industrial product division.

Board of Directors has recommended payment of final dividend of Rs 6 per equity share of face value of Rs 2 each.