OPM stood at 13.6%, down by 160 bps, thus restricting the OP growth to 7% to Rs 143.96 crore. The quarter was affected due to lower consumption of PVC which led to lower demand of PVC piping pipes for the company. Other income stood at Rs 0.12 crore down by 92% YoY. Interest costs and depreciation stood at Rs 5.15 crore and Rs 42.44 crore respectively, thus resulted in PBT of Rs 96.49 crore up by 7% YoY. Total tax stood at Rs 36.68 crore up by 16% YoY, thus PAT before Share of Profits from Associates stood at Rs 59.81 crore up by 3% YoY. There was a profit of Rs 11 crore from share of associates for Sep 17 quarter as compared to Rs 8.58 crore for Sep 16 quarter. Thus, the consolidated PAT for Sep 17 quarter stood at Rs 70.81 crore up by 6% YoY.

Mr. M P Taparia MD of Supreme Industries said: "GST introduction has smoothened in the company's operations by Aug. This has reflected in 18% volume growth in this quarter. PVC prices were quite volatile in 1^st half of current year. The demand for PVC pipe for agriculture use was low which has resulted in overall degrowth in PVC consumption by 6% in the country in first half of the year. To capture the business, company operated at a lower price level in this segment. This with erosion in inventory valuation has eroded operating margin in the quarter.

The company's intensive exports efforts over last one year has started yielding growth in export value. Company's exports have grown by 46% in the current half year as compared to corresponding period of the previous year. The company exported varieties of products to 42 countries. The company will continue its drive to boost export business with a focus to penetrate in more countries over the years.

There are new petrochemical plants that have gone into production in India and around India. Thus in spite of increase in crude oil prices, the raw material prices remain range bound. Boost in affordable house construction activities and increased infrastructure spending by the government augers well to boost the company's business in this year and beyond. ".

Management aims to register a volume growth of around 12% for FY 18.

Performance for H1 ended Sep 17

Net sales for H1 ended Sep 17 stood at Rs 2216.73 crore up by 7% YoY. OPM was lower by 250 bps to 13.7% thus resulting in a 10% fall in OP to Rs 302.62 crore. Other income was lower by 75% to Rs 0.55 crore. Interest cost was lower by 54% to Rs 8.47 crore and depreciation was higher by 12% to Rs 83.03 crore thus resulting in a PBT fall of 14% to Rs 211.67 crore. After providing total tax of Rs 76.56 crore, down by 10% YoY, PAT before share of profit from associates stood at Rs 135.11 crore down by 16% YoY. After providing profit from share of associates of Rs 14.09 crore, consolidated profit for H1 ended Sep 17 stood at Rs 149.20 crore down by 18% YoY.