Operating profit margin has jumped from 19.11% to 24.45%, leading to 86.42% rise in operating profit to Rs 509.74 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 59.67% to 59.10%. Purchase of finished goods cost rose from 0.82% to 1.33%. Employee cost decreased from 5.02% to 4.55%. Other expenses fell from 15.94% to 10.13%.  

Other income increased to Rs 3.66 crore. Provision for interest fell 89.07% to Rs 0.46 crore. Provision for depreciation rose 3.65% to Rs 54.8 crore.  

Profit before interest, tax and other unallocable items (PBIT) have jumped 94.51% to Rs 465.86 crore. PBIT of Plastics Piping Products segment rose 111.46% to Rs 357.01 crore (accounting for 76.63% of total PBIT). PBIT of Industrial Products segment rose 178.52% to Rs 39.02 crore (accounting for 8.38% of total PBIT). PBIT of Packing Products segment rose 22.30% to Rs 40.80 crore (accounting for 8.76% of total PBIT). PBIT of Consumer Products segment rose 54.64% to Rs 28.64 crore (accounting for 6.15% of total PBIT). PBIT of Others segment fell 91.86% to Rs 0.39 crore (accounting for 0.08% of total PBIT).  

PBIT margin of Plastics Piping Products segment rose from 18.02% to 26.51%. PBIT margin of Industrial Products segment rose from 8.80% to 13.31%. PBIT margin of Packing Products segment fell from 16.07% to 13.17%. PBIT margin of Consumer Products segment rose from 19.50% to 23.10%. PBIT margin of Others segment fell from 15.14% to 3.54%. Overall PBIT margin rose from 16.74% to 22.35%.  

Profit before tax grew 111.70% to Rs 458.14 crore. Share of profit/loss was 909.18% higher at Rs 70.34 crore. Provision for tax was expense of Rs 78.10 crore, compared to Rs 106.10 crore. Effective tax rate was 14.78% compared to 47.50%. Net profit attributable to owners of the company increased 284.02% to Rs 450.38 crore.

FY 2021 consolidated results  

Net sales (including other operating income) of Supreme Industries has increased 15.34% to Rs 6357.06 crore. Sales of Plastics Piping Products segment has gone up 18.98% to Rs 4,098.79 crore (accounting for 64.48% of total sales). Sales of Industrial Products segment has gone up 13.06% to Rs 761.12 crore (accounting for 11.97% of total sales). Sales of Packing Products segment rose 7.90% to Rs 1,035.06 crore (accounting for 16.28% of total sales). Sales of Consumer Products segment has gone down 7.57% to Rs 354.21 crore (accounting for 5.57% of total sales). Sales of Others segment has gone up 111.49% to Rs 107.88 crore (accounting for 1.70% of total sales).  

Operating profit margin has jumped from 15.14% to 20.20%, leading to 53.89% rise in operating profit to Rs 1,284.25 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 65.17% to 60.65%. Purchase of finished goods cost rose from 0.83% to 1.99%. Employee cost increased from 4.91% to 5.00%. Other expenses fell from 14.41% to 11.66%.  

Other income rose 198.60% to Rs 4.27 crore. Provision for interest fell 52.95% to Rs 9.5 crore. Loan funds declined from Rs 440.42 crore as of 31 March 2020 to Rs 26.27 crore as of 31 March 2021. Inventories declined from Rs 890.57 crore as of 31 March 2020 to Rs 760.77 crore as of 31 March 2021. Sundry debtors were higher at Rs 389.83 crore as of 31 March 2021 compared to Rs 312.84 crore as of 31 March 2020. Cash and bank balance rose to Rs 768.40 crore as of 31 March 2021 from Rs 231.39 crore as of 31 March 2020. Investments rose to Rs 336.59 crore as of 31 March 2021 from Rs 207.30 crore as of 31 March 2020 .

 Profit before interest, tax and other unallocable items (PBIT) has jumped 66.35% to Rs 1,093.23 crore. PBIT of Plastics Piping Products segment rose 78.34% to Rs 821.29 crore (accounting for 75.13% of total PBIT). PBIT of Industrial Products segment rose 94.78% to Rs 63.46 crore (accounting for 5.80% of total PBIT). PBIT of Packing Products segment rose 22.74% to Rs 124.59 crore (accounting for 11.40% of total PBIT). PBIT of Consumer Products segment rose 3.58% to Rs 59.66 crore (accounting for 5.46% of total PBIT). PBIT of Others segment rose 387.53% to Rs 24.23 crore (accounting for 2.22% of total PBIT).  

PBIT margin of Plastics Piping Products segment rose from 13.37% to 20.04%. PBIT margin of Industrial Products segment rose from 4.84% to 8.34%. PBIT margin of Packing Products segment rose from 10.58% to 12.04%. PBIT margin of Consumer Products segment rose from 15.03% to 16.84%. PBIT margin of Others segment rose from 9.74% to 22.46%. Overall PBIT margin rose from 11.92% to 17.20%.  

Provision for depreciation rose 3.46% to Rs 212.79 crore. Fixed assets increased to Rs 1,754.12 crore as of 31 March 2021 from Rs 1,684.64 crore as of 31 March 2020. Intangible assets declined from Rs 16.02 crore to Rs 11.18 crore.  

Profit before tax grew 74.76% to Rs 1,066.23 crore. Share of profit/loss was 367.77% higher at Rs 145.99 crore. Provision for tax was expense of Rs 234.08 crore, compared to Rs 173.92 crore. Effective tax rate was 19.31% compared to 27.12%. 

Net profit attributable to owners of the company increased 109.27% to Rs 978.14 crore.  

Promoters' stake was 48.85% as of 31 March 2021 compared to 49.94% as of 31 March 2020 .

The year under review was the toughest in the history of the Company. It started with an extreme negative outlook. The Company had to keep operations of it's 24 plants' closed for most part of the month of April 2020 and could begin in a gradual manner from last week of April onwards. 

In the last 10 days, just before the closing of the year, the business has again witnessed tough situation as Covid – 19 second wave started affecting the general public with alarming speed. The situation has become further volatile due to steep increase in Polymer prices. The increase in prices of PVC was steepest. In the last 40 years, international prices of PVC have never reached to the levels seen in April 2021 especially in India, some other Latin American countries and Turkey. 

The company however has come out of these two extreme adverse situations with unparalleled performance where the profit of the Company was highest in it's 79 years of operations. This was partly supported by more than Rs. 200 crores inventory gain on account of raw material price increase which accrued in it's operations for the year. 

Even with temporary setback which the Company is experiencing in the month of April 2021, the Company has not reduced it's Capex plan for the year 2021-22. In the current year, not only there will be brownfield expansion of capacities and new products at the existing plants but Company has also embarked on putting up three new greenfield plants in the states of Assam, Orissa and Tamilnadu during the current year. 

The Government at the Centre and States has put the priority focus on Jal Jeevan Mission, Swatch Bharat Abhiyan, Sanitation and affordable houses to all and development of 100 smart cities on all India basis. NITI Aayog has declared following as growth drivers across the country: 

• Government infrastructure spending

• Increasing construction

• Increasing Industrial production

• Rising demand from irrigation sector

• Replacement of aging Pipes

• Providing affordable house to all

• Heavy investment by Government in irrigation, housing and sanitization 

Almost all the above growth drivers will boost the business of Plastic Piping System Division. 

The stock trades at Rs 2113.