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Supreme Industries reported consolidated net sales of Rs 1161.66 crore for June 17 quarter down by 2% YoY. OPM stood at 13.7%, down by 330 bps, thus resulting in an OP de- growth of 21% to Rs 158.65 crore. The quarter was affected due to impending GST implantation form July 1. Other income stood at Rs 0.43 crore. Interest costs and depreciation stood at Rs 3.32 crore and Rs 40.59 crore respectively, thus resulted in PBT of Rs 115.17 crore down by 26% YoY. Total tax stood at Rs 39.88 crore down by 26% YoY, thus PAT before Share of Profits from Associates stood at Rs 75.29 crore down by 26% YoY. There was a profit of Rs 3.09 crore from share of associates for June 17 quarter as compared to Rs 13.68 crore for June 16 quarter. Thus, the consolidated PAT for June 17 quarter stood at Rs 78.38 crore down by 32% YoY.
Mr. M P Taparia MD of Supreme Industries said: "The introduction of GST from 1st July 2017 having same tax rate on similar product range throughtout the country has integrated the country's economy for the first time. In this process large portion of informal economic operations is expected to move to formal. This will boost the tax revenue enabling the country to move to a moderate rate of taxes in future.
On most of our products the total incidence of taxes has gone down between 2% to 20%. This will facilitate the growth to the business.
In the current year, the business was affected since last week of May due to impending GST introduction from 1st July 2017. It remained in the slow mode up to 3rd week of July. Now most of our customers are registered under GST. Hence company expects that the business should improve from Aug 2017 onwards".
Company envisages capex in the range of around Rs 300 to Rs 350 crore in FY 18 and the same is progressing smoothly. Commercial production of blow furniture at West Bengal unit has commenced and 5 product items have been launched in the market.
The company has been allotted 40 acres of land at concessional rate by State government of Telangana.
The company has sold 92196 MT of plastic goods a volume de-growth of 5% for the June 17 quarter.
Management aims to register a volume growth of around 12% for FY 18.
Please Note: The company 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.
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