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Supreme Industries reported consolidated net sales of Rs 1282.63 crore for Mar'17 quarter up by 7% YoY. OPM stood at 14.4%, thus resulting in a in OP growth of 19% to Rs 184.79 crore. Higher sale of value added products and lower base of previous quarter has helped in overall improvement in margins and thus OP. Other income stood at Rs 2.56 crore. Interest costs and depreciation stood at Rs 3.42 crore and Rs 41.18 crore respectively, thus resulted in PBT of Rs 200.59 crore up by 24% YoY. Total tax stood at Rs 73.29 crore up by 17% YoY, thus PAT before Share of Profits from Associates stood at Rs 127.30 crore up by 29% YoY. There was a profit of Rs 20.85 crore from share of associates for Mar'17 quarter as compared to Rs 16.29 crore for Mar'15 quarter. Thus, the consolidated PAT for Mar'17 quarter stood at Rs 148.15 crore up by 29% YoY.
Please Note: The company also changed its financial year from April to March every year from FY'17 onwards and thus FY'16 was a financial year ended 9 months period ended Mar'16 and are not comparable with 12 months period of FY'17.
For 12 months ended Mar'17, net sales stood at Rs 4462.26 crore with OPM at 17.1% resulting in a OP of Rs 761.87 crore. Other income stood at Rs 5.13 crore. Interest and depreciation stood at Rs 30.26 crore and Rs 154.29 crore. After providing for share of profits from associates of Rs 53.73 crore, PAT for 12 months ended Mar'17 stood at Rs 430.40 crore.
The company has sold 95870 MT of plastic goods a volume de-growth of 6% for the Mar'17 quarter. For FY'17, the company has sold 340906 MT of plastic goods and achieved a volume growth of around 4%.
Mr. M P Taparia MD of Supreme Industries said: "The overall economic situation in the country post demonetization looks robust. This will lead to higher growth in coming years for the company as company's products mostly cater to domestic needs.
The business conditions look favourable due to execution of various initiatives announced and getting implemented by the government ie, implementation of GST regime by 1st July 2017 which will integrate the country's economy as one, affordable houses for all by 2022, doubling the farmers income by 2022 from the base year of 2016 and increased spending on irrigation, augmenting drinking water supply, strengthening sewerage and drainage network. All these initiatives will boost company's business and offers new business opportunities.
Polymer prices except PVC resin remained range bound at affordable level. However due to demonetization the polymer consumption growth in the previous year was around 9% resulting in countrywide consumption of around 15 million tons as against 13.7 million tons in the previous year".
Company has incurred a capex of around Rs 213 crore in FY'17 and has planed capex of around Rs 300 crore in FY'18, which will be largely in increasing capacity of roto moulded products, protective packaging products, for green field expansion of industrial components, packaging films, moulds for bath fittings etc.
The company has recommended final dividend of Rs 12 per equity share of face value of Rs 2 each for FY 2017.
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