OPM stood at 15.5%, down by 130 bps, thus restricting the OP growth to 6% to Rs 197.73 crore. The quarter witnessed increase in raw material costs due to global tight supply. Other income stood at Rs 0.50 crore up by 25% YoY. Interest costs and depreciation stood at Rs 7.86 crore and Rs 42.76 crore respectively, thus resulted in PBT of Rs 147.61 crore up by 6% YoY. Total tax stood at Rs 51.78 crore up by 8% YoY, thus PAT before Share of Profits from Associates stood at Rs 95.83 crore up by 6% YoY. There was a profit of Rs 8.39 crore from share of associates for Dec 17 quarter as compared to Rs 10.62 crore for Dec 16 quarter. Thus, the consolidated PAT for Dec 17 quarter stood at Rs 104.22 crore up by 3% YoY.

Mr. M P Taparia MD of Supreme Industries said: "GST has stabilized. The introduction of E-Way Bill from 1st Feb. will boost the business of organized players. Going forward the demand looks better in all the segments serviced by the Company.

Raw Material prices have strengthened since December beginning. The Hurricane Harvey cyclone in USA Gulf Coast has forced several Petrochemical plant to remain closed for a significant period. It also delayed new plants which were to come on stream. This tightness was further exacerbated due to import ban on plastics scrap by China effective from 1st January this year. This has boosted demand of virgin polymers as china was importing in excess of 5 million tons of plastics waste in a year. The world economy is also in higher growth path. The crude prices has also gone up. Several polluting plants making polymers in China were asked to close down. The effect of all these factors have made polymer supply position tight and boosted the price level. In first half of the current calendar year the polymer prices are expected to remain at elevated level.

The Company still maintains its annual volume growth estimate of 12% for the financial year as the Company has clocked volume 19% growth in the third quarter. The Company is able to pass the increased Raw material cost, The Company could increase its OPM in the quarter by 2% as compared to previous quarter.

The demand from housing sector has returned back. The company is getting good enquiries from infrastructure sector. The export of company's products has increased by 59% in the quarter as compared to corresponding previous year. The company has installed CPVC fire sprinkler system first time in India to the satisfaction of the relevant authorities. The Company expects good business growth in this application during current financial year and beyond".

Performance for 9 months ended Dec 17

Net sales for 9 months ended Dec 17 stood at Rs 3495.03 crore up by 10% YoY. OPM was lower by 210 bps to 14.3% thus resulting in a 4% fall in OP to Rs 500.36 crore. Other income was lower by 59% to Rs 1.05 crore. Interest cost was lower by 39% to Rs 16.33 crore and depreciation was higher by 11% to Rs 125.79 crore thus resulting in a PBT fall of 7% to Rs 359.29 crore. After providing total tax of Rs 128.34 crore, down by 4% YoY, PAT before share of profit from associates stood at Rs 230.95 crore down by 8% YoY. After providing profit from share of associates of Rs 22.48 crore, consolidated profit for 9 months ended Dec 17 stood at Rs 253.43 crore down by 11% YoY.