AI assistant
Supreme Industries Ltd. — Interim / Quarterly Report 2021
Jan 23, 2021
60540_rns_2021-01-23_3da718a4-9baa-412a-a996-b51a5e015df5.pdf
Interim / Quarterly Report
Open in viewerOpens in your device viewer
==> picture [31 x 842] intentionally omitted <==
==> picture [132 x 43] intentionally omitted <==
SH/13/2021 23[rd] January, 2021 National Stock Exchange of India Ltd., Exchange Plaza, 5th floor, Plot No. C/1, G. Block, Bandra-Kurla Complex, Bandra (East), MUMBAI – 400051.
BSE Limited., Market-Operation Dept., 1st Floor, New Trading Ring, Rotunda Bldg., P.J. Towers, Dalal Street, Fort, MUMBAI 400023.
Sub: Outcome of Board Meeting of the Company held on 23[rd] January, 2021. Ref: Regulation 30 and 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
Dear Sirs,
Pursuant to Regulation 30 and 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that the Board of Directors of the Company at its meeting held on Saturday, the 23[rd] January, 2021, inter- alia, transacted the following business:
- Approved the Un-Audited Financial Results (both Consolidated and Standalone) for the Third Quarter ended 31[st] December, 2020.
We enclose a copy each of the following:
-
I. Un-Audited Financial Results (both Consolidated and Standalone) for the Third Quarter ended 31[st] December, 2020.
-
II. Limited Review Report dated 23[rd] January, 2021 from M/s Lodha & Co., Statutory Auditors of the Company.
-
III. Press Release.
The Extract of the Unaudited Consolidated Financial Results shall be published in the newspapers. The Standalone Financial statement, Consolidated Financial Statement and Press Release are available on the Company’s website www.supreme.co.in
The Meeting commenced at 11.30 a.m. and concluded at 01:10 p.m.
Please take the same on your records. Thanking you, Yours faithfully, For The Supreme Industries Ltd., RAJENDRAKUMAR Digitally signed by JUGALKISHORE RAJENDRAKUMAR JUGALKISHORE SABOO SABOO Date: 2021.01.23 13:17:50 +05'30' (R.J. Saboo) VP (Corporate Affairs) & Company Secretary Encl.: as above
The Supreme Industries Limited +91(022)22820072,22851656 Regd. Ofi. : 612, Raheja Chambers, Nariman Point, Mumbai-400 021. INDIA +91 (022) 22851657, 30925825 CIN : L35920MH1942PLC0035S4 PAN : AAACT 1344F sil [email protected]
Corp. OP. : T T61 & 1162, Solitaire Corporate Park, 167, Guru Hargovindji Marg, Andheri- Ghatkopar Link Road, Chakala, Andheri (East), Mumbai400093. INDIA *91 (022) 67710000, 40430000 +91 (022) 67710099, 40430099 sil [email protected] www.supreme.co.in
The Supreme Industries Limited
CIN : L35920MH1942PLC003554; Regd. Office: 612, Raheja Chambers, Nariman Point, Mumbai 400 021; Website : www.supreme.co.in; Tel. 91 22 22851656; Fax: 91 22 22851657
Statement of Unaudited Consolidated Financial Results for the Quarter and Nine months ended 31st December 2020
==> picture [55 x 20] intentionally omitted <==
==> picture [556 x 430] intentionally omitted <==
----- Start of picture text -----
Rs. In lakhs
Quarter ended Nine months ended Year ended
Particulars 31.12.2020 30.09.2020 31.12.2019 31.12.2020 31.12.2019 31.03.2020
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
1 INCOME
(a) Revenue from operations 184380 137478 137332 427247 408105 551154
(b) Other income 25 8 80 61 137 143
TOTAL INCOME 184405 137486 137412 427308 408242 551297
2 EXPENSES
(a) Cost of materials consumed 107812 90312 95327 255446 282663 370600
(b) Purchases of traded Goods 4939 3933 928 9640 3539 4742
(c) Changes in inventories of finished goods, Semi finished goods and
traded goods 3352 (9381) (7348) 11320 (13188) (17514)
(d) Employee benefits expenses 8129 7269 6845 21726 20557 27904
(e) Finance costs (Refer note 3b) (124) 249 565 904 1598 2019
(f) Depreciation and amortisation expense 5492 5230 5154 15799 15281 20568
(g) Power and fuel expense 5536 5353 5413 14377 16100 21608
(h) Other expenses 14456 14407 14074 37287 42322 60359
TOTAL EXPENSES 149592 117372 120958 366499 368872 490286
3 PROFIT BEFORE SHARE OF PROFIT OF ASSOCIATES [1-2] 34813 20114 16454 60809 39370 61011
4 SHARE OF PROFIT OF ASSOCIATES 5279 2651 76 7565 2424 3121
5 PROFIT BEFORE TAX [3+4] 40092 22765 16530 68374 41794 64132
6 TAX EXPENSES 8864 5270 4191 15598 6782 17392
7 PROFIT AFTER TAX [5-6] 31228 17495 12339 52776 35012 46740
8 OTHER COMPREHENSIVE INCOME (NET OF TAX)
(a) Items that will not be reclassified subsequently to Profit or loss
Remeasurment of net defined benefit plans (84) (83) (90) (251) (272) (566)
Income Tax relating to Remeasurment of net defined benefit plans 21 21 23 63 69 143
(b) Share of other comprehensive income in associates (net of tax) - - - - - (17)
TOTAL OTHER COMPREHENSIVE INCOME (NET OF TAX) (63) (62) (67) (188) (203) (440)
9 TOTAL COMPREHENSIVE INCOME FOR THE PERIOD [7+8] 31165 17433 12272 52588 34809 46300
10 EQUITY
Equity share capital 2541 2541 2541 2541 2541 2541
Other equity 223578
11 EARNING PER SHARE - BASIC & DILUTED (RS.) 24.58 13.77 9.71 41.55 27.56 36.80
----- End of picture text -----
The Supreme Industries Limited
CIN : L35920MH1942PLC003554; Regd. Office: 612, Raheja Chambers, Nariman Point, Mumbai 400 021; Website : www.supreme.co.in; Tel. 91 22 22851656; Fax: 91 22 22851657
Statement of Unaudited Standalone Financial Results for the Quarter and Nine months ended 31st December 2020
==> picture [56 x 22] intentionally omitted <==
==> picture [560 x 380] intentionally omitted <==
----- Start of picture text -----
Rs. in Lakhs
Quarter ended Nine months ended Year ended
Particulars 31.12.2020 30.09.2020 31.12.2019 31.12.2020 31.12.2019 31.03.2020
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
1 INCOME
(a) Revenue from operations 184377 137475 137325 427240 408085 551127
(b) Other income 694 442 1237 1164 1873 1879
TOTAL INCOME 185071 137917 138562 428404 409958 553006
2 EXPENSES
(a) Cost of materials consumed 107812 90312 95322 255446 282652 370600
(b) Purchases of traded Goods 4938 3931 928 9636 3539 4729
(c) Changes in inventories of finished goods, Semi finished goods and
traded goods 3352 (9381) (7348) 11320 (13188) (17514)
(d) Employee benefits expenses 8094 7253 6808 21658 20483 27791
(e) Finance costs (Refer note 3b) (124) 249 565 904 1598 2018
(f) Depreciation and amortisation expense 5492 5230 5154 15799 15281 20567
(g) Power and fuel expense 5536 5353 5413 14377 16100 21608
(h) Other expenses 14473 14433 14087 37345 42383 60421
TOTAL EXPENSES 149573 117380 120929 366485 368848 490220
3 PROFIT BEFORE TAX [1-2] 35498 20537 17633 61919 41110 62786
4 TAX EXPENSES 8864 5178 4191 15598 6782 13147
5 PROFIT AFTER TAX [3-4] 26634 15359 13442 46321 34328 49639
6 OTHER COMPREHENSIVE INCOME (NET OF TAX)
Items that will not be reclassified subsequently to Profit or loss
(a) Remeasurment of net defined benefit plans (84) (83) (90) (251) (272) (566)
(b) Income Tax relating to Remeasurment of net defined benefit plans 21 21 23 63 69 143
TOTAL OTHER COMPREHENSIVE INCOME (NET OF TAX) (63) (62) (67) (188) (203) (423)
7 TOTAL COMPREHENSIVE INCOME FOR THE PERIOD [5+6] 26571 15297 13375 46133 34125 49216
8 EQUITY
Equity share capital 2541 2541 2541 2541 2541 2541
Other equity 210718
9 EARNING PER SHARE - BASIC & DILUTED (RS.) 20.97 12.09 10.58 36.47 27.02 39.08
----- End of picture text -----
Notes:
==> picture [70 x 28] intentionally omitted <==
-
1 The Company sold 111584 MT of Plastic goods and achieved net product turnover of Rs. 1766 Crores during the 3rd quarter of the current year against sales of 101393 MT of Plastic goods and achieved net product turnover of Rs. 1356 Crores in the corresponding quarter of previous year achieving volume and product value growth of about 10 % and 30 %, respectively. The Company sold 297871 MT of Plastic goods and achieved net product turnover of Rs. 4128 Crores during the Nine months of the current year against sales of 308321 MT and net product turnover of Rs. 4028 crores in the corresponding Nine months of previous year resulting volume degrowth of about 3 % and product value growth 2 %, respectively.
-
2 As a result of the nationwide lockdown imposed by the Government of India, the operations of the Company were temporarily disrupted at its various manufacturing facilities impacting production and dispatches from the second half of March 2020. The Company had resumed operations since last week of April 2020 / first week of May 2020 in compliance with the guidelines issued by respective authorities and is continuing to take adequate precautions for safety and wellbeing of its employees.
-
The Company has considered the possible impact of COVID-19 in preparation of the above results. The impact of the global health pandemic may be different from that estimated as at the date of approval of results. Considering the continuing uncertainties, the Company will continue to closely monitor any material changes to future economic conditions.
-
3 (a) In the standalone results, "Other Income" for the current quarter and nine months includes dividend received from Supreme Petrochem Limited, an associate, of Rs. 669 lakhs and Rs. 1103 lakhs (Previous periods Rs. 1157 lakhs and Rs. 1736 lakhs), respectively.
==> picture [525 x 84] intentionally omitted <==
----- Start of picture text -----
(b) Finance cost comprise: Rs. In lakhs
Quarter ended Nine months ended Year ended
Particulars
31.12.2020 30.09.2020 31.12.2019 31.12.2020 31.12.2019 31.03.2020
Finance costs 219 542 678 1709 1900 2967
Less: Finance income 343 293 113 805 302 948
Finance costs (124) 249 565 904 1598 2019
----- End of picture text -----
-
4 The Code on Social Security, 2020 (‘Code’) relating to employee benefits during employment and post-employment benefits has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code and recognise the same when the Code becomes effective.
-
5 Segment Reporting :
| Segment Reporting : 1) Segment Revenue Plastics Piping Products Industrial Products Packaging Products Consumer Products Others Net Revenue from Operations 2) Segment Results Plastics Piping Products Industrial Products Packaging Products Consumer Products Others Total Segment Profit before Interest and Tax Add: Share of profit of associates Less: Finance Cost Profit before Tax Less: Provision for Tax Profit after Tax Add: Other comprehensive income (net of tax) Total Comprehensive Income Particulars Less: Other Unallocable expenditure (net of other income) |
Rs. In lakhs Year ended 31.12.2020 30.09.2020 31.12.2019 31.12.2020 31.12.2019 31.03.2020 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited) 114020 84725 79837 275204 250785 344487 21610 18145 15656 46803 51392 67319 31792 21984 30863 72533 75169 95927 11674 8547 10455 23021 28822 38320 5284 4077 521 9686 1937 5101 184380 137478 137332 427247 408105 551154 - - - - - - 25027 14754 10354 46428 29169 46052 2005 1199 849 2444 1857 3258 3987 2559 4374 8379 6815 10151 2283 1269 1527 3102 3908 5760 1392 1004 10 2384 18 497 34694 20785 17114 62737 41767 65718 5279 2651 76 7565 2424 3121 (124) 249 565 904 1598 2019 5 422 95 1024 799 2688 40092 22765 16530 68374 41794 64132 8864 5270 4191 15598 6782 17392 31228 17495 12339 52776 35012 46740 (63) (62) (67) (188) (203) (440) 31165 17433 12272 52588 34809 46300 Quarter ended Nine months ended |
|---|---|
Notes on segment information
- 5.1 Business segments
Based on the "management approach" as defined in Ind-AS 108 - Operating Segments, the Managing Director/Decision Maker evaluates the Company's performance and allocates resources based on an analysis of various performance indicators by business segments. Accordingly, information has been presented along with these business segments. The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual segments.
5.2 Segment assets and liabilities
The Company is engaged mainly in production of plastic products. Most of the assets, liabilities of the aforesaid reportable segments are interchangeable or not practically allocable. Accordingly, segment assets, liabilities have not been presented.
-
6 The Consolidated Results includes Results of (a) the Company's 100% Subsidiary Company viz." The Supreme Industries Overseas (FZE)" incorporated in SAIF Zone,UAE and (b) Associate Company viz."Supreme Petrochem Limited", in which the Company holds 30.78% of its paid-up equity share capital.
-
7 The previous periods figures have been re-grouped / re-classified wherever required to conform to current periods classification.
The above financial results have been reviewed by the Audit Committee before being approved by the Board of Directors at their meetings held on 23[rd] January, 2021.
For The Supreme Industries Ltd.,
Place: Mumbai Dated: 23[rd] January, 2021.
Digitally signed by BAJRANGLA BAJRANGLAL S TAPARIA L S TAPARIA Date: 2021.01.23 13:20:00 +05'30'
sd/-
B L Taparia Chairman (DIN No. 00112438)
==> picture [579 x 7] intentionally omitted <==
==> picture [579 x 7] intentionally omitted <==
==> picture [579 x 7] intentionally omitted <==
==> picture [579 x 8] intentionally omitted <==
==> picture [579 x 7] intentionally omitted <==
==> picture [579 x 7] intentionally omitted <==
==> picture [579 x 7] intentionally omitted <==
==> picture [579 x 7] intentionally omitted <==
==> picture [579 x 8] intentionally omitted <==
==> picture [579 x 6] intentionally omitted <==
==> picture [133 x 11] intentionally omitted <==
----- Start of picture text -----
LIMITED REVIEW REPORT
----- End of picture text -----
To The Board of Directors The Supreme Industries Limited
-
We have reviewed the accompanying statement of unaudited consolidated financial results of The Supreme Industries Limited (“the Holding Company”), its foreign subsidiary and an associate (together referred to as “the Group”) for the quarter ended December 31, 2020 and year to date results for the period from April 01, 2020 to December 31, 2020 (“the Statement”) attached herewith, being submitted by the Holding Company pursuant to the requirements of Regulation 33 of the SEBI (Listing, Obligations and Disclosure requirements) Regulations, 2015 (‘Listing regulations’). This statement is the responsibility of the Holding Company’s management and has been approved by the Board of Directors. Our responsibility is to issue a report on these financial results based on our review.
-
We conducted our review in accordance with the Standard on Review Engagements (SRE) 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity” issued by the Institute of Chartered Accountants of India. This Standard requires that we plan and perform the review to obtain moderate assurance as to whether the financial statements are free of material misstatement. A review is limited primarily to inquiries of Holding Company personnel and analytical procedures applied to financial data and thus provide less assurance than an audit. We have not performed an audit and accordingly, we do not express an audit opinion.
-
The Statement includes the results of the following entities:
| Name of the Entity | Relationship |
|---|---|
| The SupremeIndustries Overseas (FZE) | Wholly ownedforeignsubsidiary |
| Supreme Petrochem Limited | Associate in which the Group holds 30.78% of equity |
-
a) We did not review the financial statements of the wholly owned foreign subsidiary included in the consolidated financial statements, whose financial statements reflect total revenue of Rs. 52 lakhs and Rs. 133 lakhs and net loss (total comprehensive loss) of Rs. 16 lakhs and Rs. 7 lakhs for the quarter ended December 31, 2020 and for the period from April 01, 2020 to December 31, 2020, respectively, as considered in the statement. These financial statements have been certified by the Company’s Management and furnished to us, and our opinion, in so far as it relates to the amount and disclosures included in respect of the said subsidiary is also based solely on these certified financial statements.
-
b) We did not review the financial results of the Associate included in the consolidated financial statements, whose financial statements reflect net profit and total comprehensive income of Rs. 5,279 lakhs and Rs. 7,565 lakhs (represents Group’s share) for the quarter ended December 31, 2020 and for the period from April 01, 2019 to December 31, 2020, respectively. These financial statements have been reviewed by other auditor whose review report has been furnished to us by the Holding Company’s management and our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of the associate is based solely on the report of the other auditor.
1 | P a g e
==> picture [579 x 7] intentionally omitted <==
==> picture [579 x 7] intentionally omitted <==
==> picture [579 x 7] intentionally omitted <==
==> picture [579 x 8] intentionally omitted <==
==> picture [579 x 7] intentionally omitted <==
==> picture [579 x 7] intentionally omitted <==
==> picture [579 x 7] intentionally omitted <==
==> picture [579 x 7] intentionally omitted <==
==> picture [579 x 8] intentionally omitted <==
==> picture [579 x 6] intentionally omitted <==
-
c) We are not required to perform procedures (as there is no significant component which in aggregate represents at least eighty percent of each of the consolidated revenue, assets and Profits) in accordance with the circular issued by the Securities Exchange Board of India (SEBI) under regulation 33(8) of the Listing Regulations, to the extent applicable .
-
We draw your attention to the Note 2 to the financial results regarding the assessment made by management relating to impact of COVID-19 pandemic on the operations of the Group.
-
Our conclusion is not modified in respect of matters referred to in para 4 and 5.
-
Based on our review, conducted as above, nothing has come to our attention that causes us to believe that the accompanying statement of unaudited financial results prepared in accordance with applicable Indian Accounting Standards (IND AS) and other recognized accounting practices and policies has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with Circulars issued from time to time including the manner in which it is to be disclosed, or that it contains any material misstatement.
Place: Mumbai Date: 23rd January, 2020
For Lodha and Company Chartered Accountants ICAI Firm Registration No. 301051E R.P. Baradiya Partner Membership No. 44101 UDIN:- 21044101AAAABP3152
2 | P a g e
==> picture [579 x 7] intentionally omitted <==
==> picture [579 x 7] intentionally omitted <==
==> picture [579 x 7] intentionally omitted <==
==> picture [579 x 8] intentionally omitted <==
==> picture [579 x 7] intentionally omitted <==
==> picture [579 x 7] intentionally omitted <==
==> picture [579 x 7] intentionally omitted <==
==> picture [579 x 7] intentionally omitted <==
==> picture [579 x 8] intentionally omitted <==
==> picture [579 x 6] intentionally omitted <==
LIMITED REVIEW REPORT
To The Board of Directors of The Supreme Industries Limited
-
1) We have reviewed the accompanying statement of unaudited standalone financial results of The Supreme Industries Limited (‘the Company’) for the quarter ended December 31, 2020 and year to date results for the period from April 01, 2020 to December31, 2020 (“the statement”) attached herewith being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing, Obligations and Disclosure requirements) Regulations, 2015 (‘Listing regulations’). This statement is the responsibility of the Company’s Management and has been approved by the Board of Directors. Our responsibility is to issue a report on these results based on our review.
-
2) We conducted our review in accordance with the Standard on Review Engagement (SRE) 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity” issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the financial statements are free of material misstatement. A review is limited primarily to inquiries of company personnel and analytical procedures applied to financial data and thus provide less assurance than an audit. We have not performed an audit and accordingly, we do not express an audit opinion.
-
3) We draw your attention to the Note 2 to the financial results regarding the assessment made by management relating to impact of COVID-19 pandemic on the operations of the Company.
Our conclusion is not modified in respect of this matter.
- 4) Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying statement of unaudited financial results prepared in accordance with applicable Indian Accounting Standards (IND AS) and other recognized accounting practices and policies, has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with circular issued from time to time, including the manner in which it is to be disclosed, or that it contains any material misstatement.
For Lodha and Company Chartered Accountants ICAI Firm Registration No. 301051E R.P. Baradiya Partner Place: Mumbai Membership No. 44101 Date: January 23, 2021 UDIN: 21044101AAAABO6892
==> picture [456 x 9] intentionally omitted <==
==> picture [456 x 9] intentionally omitted <==
==> picture [456 x 9] intentionally omitted <==
==> picture [456 x 9] intentionally omitted <==
==> picture [456 x 4] intentionally omitted <==
==> picture [87 x 33] intentionally omitted <==
The Supreme Industries Limited
Press Release
THE SUPREME INDUSTRIES LIMITED (Supreme) ANNOUNCES UNAUDITED STANDALONE & CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31[st] DECEMBER, 2020.
Mumbai, 23[rd] January, 2021
The Supreme Industries Limited (Supreme), India’s leading Plastics product manufacturing company, announced its Unaudited Standalone & Consolidated financial results for the Quarter and Nine months ended 31[st] December, 2020, at its Board Meeting held today.
[A] Standalone Results (Excluding Construction Business)
==> picture [499 x 152] intentionally omitted <==
----- Start of picture text -----
(Rs. in Crores)
Nine Nine
Quarter Quarter months months Previous
ended ended ended ended Year ended
31.12.2020 31.12.2019 31.12.2020 31.12.2019 31.03.2020
Plastic goods sold (MT) 111584 101393 297871 308321 411521
Plastics product turnover 1766 1356 4128 4028 5408
Total income 1851 1385 4284 4099 5504
Operating profit (PBIDT) 409 233 786 580 849
Net profit before tax 355 176 619 411 623
Net profit after tax 266 134 463 343 493
----- End of picture text -----
[B] Consolidated Results (Excluding Construction Business)
| (Rs. in Crores) | (Rs. in Crores) | ||||
|---|---|---|---|---|---|
| Quarter ended 31.12.2020 |
Quarter ended 31.12.2019 |
Nine months ended 31.12.2020 |
Nine months ended 31.12.2019 |
Previous Year ended 31.03.2020 |
|
| Consolidated total income | 1844 | 1374 | 4273 | 4082 | 5487 |
| Consolidated operating profit (PBDIT) |
455 | 222 | 851 | 587 | 862 |
| Consolidated net profit before tax |
401 | 165 | 684 | 418 | 636 |
| Consolidated net profit after tax |
312 | 123 | 528 | 350 | 464 |
[C] Product Group Wise Performance
==> picture [499 x 127] intentionally omitted <==
----- Start of picture text -----
Volume (MT) Value (Rs. In crores) OPM %
Segment % %
Q3’20 Q3’19 Change Q3’20 Q3’19 Change Q3’20 Q3’19
Plastic Piping System 76759 70431 9 % 1140 798 43 % 24 % 16 %
Industrial Products 11652 8801 32 % 216 157 38 % 13 % 11 %
Packaging Products 16785 16399 2 % 318 309 3 % 16 % 17 %
Consumer Products 6388 5762 11 % 117 104 12 % 23 % 18 %
Total 111584 101393 10 % 1791 1368 31 % 21 % 16 %
----- End of picture text -----
[D] The Company sold 111584 MT of Plastic goods and achieved net product turnover of Rs. 1766 Crores during the 3rd quarter of the current year against sales of 101393 MT of Plastic
goods and achieved net product turnover of Rs. 1356 Crores in the corresponding quarter of previous year achieving volume and product value growth of about 10 % and 30 %, respectively.
The Company sold 297871 MT of Plastic goods and achieved net product turnover of Rs. 4128 Crores during the Nine months of the current year against sales of 308321 MT and net product turnover of Rs. 4028 crores in the corresponding Nine months of previous year resulting volume degrowth of about 3 % and product value growth 2 %, respectively.
[E] The overall turnover of value added products increase to Rs. 758 crores during the current quarter as compared to Rs. 568 crores in the corresponding period of previous year achieving growth of 33 %.
[F] The Company has Cash Surplus funds of Rs. 432 crores as on 31[st] December, 2020 as against net Borrowings of Rs. 217 crores as on 31st March, 2020.
[G] Business Outlook
Mr. M. P. Taparia, Managing Director, The Supreme Industries Limited, said:
Business situation has become normal in all the segments where Company is operating. Company achieved a volume and value growth of 10% and 30% respectively in the 3rd quarter.
The Company’s value added business has grown to Rs. 758 crores as compared to Rs. 568 Crores in comparable quarter of the previous year. The increase in volume sale supported by increase in the business of value added products have improved operating margin to 21.53% compared to 16.11% of the previous year in the same quarter. The OPM has also improved significantly due to inventory gain on account of rapid price increase of PVC resin to the extent of around Rs. 80 crores in the quarter.
The Crop situation in the Country is normal, which has boosted the rural income. The Rabi crop sowing has also been done in a larger area than the previous year. Company enjoyed good demand for its products from rural market and Tier III and Tier IV cities.
In the current quarter, the demand also got a fillip from the Housing market. Several Policy initiatives have facilitated brisk sale of ready to occupy housing units. Demand for Company’s housing products has revived in Metro cities.
The demand for Furniture and Material handling products were higher compared to previous year. With a better offtake of consumer durables, the Company enjoyed good demand for its’ industrial components business.
The Company’s Packaging segment working was affected due to increase in its raw material prices which could be passed over with a time lag, which may happen in the current quarter.
Company has also introduced economy model of Tarpaulin also in Cross Laminated film segment having lower value addition. However, the overall demand for Cross Laminated film products for the year is expected at a higher level which may boost business to 21,000 MT in the year compared to 17,000 MT in the previous year.
Protective packaging division in this segment has also fared better as demand has come from Construction, Consumer appliances, yoga mats and other segments.
Plastic raw material prices remain at an elevated level. PVC resin prices have gone up by Rs. 23/- per kg in the quarter with an increase of 25% in its prices. The PVC prices remain even now at the elevated level. At the increased prices, there is a demand resistance from agricultural segment. It is expected that the resin prices may start softening by March.
The Company’s CAPEX plan is going smoothly. Along with carried forward investment commitment of Rs. 182 crores, the Company has made a plan to invest around Rs. 400 crores in this year. The said investment is made mostly in its existing plants where additional construction activities are going on at Seven sites. Company is also now putting up new plants at three locations. Land for these plants have been already acquired at Orissa & Tamil Nadu. In Assam, the plant is being constructed on a lease agreement basis. Company aims to put all these new plants in production in the year 2021-22.
About Supreme Industries Limited
Supreme Industries Limited is India’s leading plastics product manufacturer, offering a wide and comprehensive range of plastic products in India. The company operates in various product categories viz. Plastic Piping System, Cross Laminated Films & Products, Protective Packaging Products, Industrial Moulded Components, Moulded Furniture, Storage & Material Handling Products, Performance Packaging Films and Composite LPG Cylinders.
Supreme Industries has 25 technologically advanced manufacturing facilities located at various places spread across the country. The company has built-up excellent relationship with its distributors and is also providing orientation to them, in order to ensure proper service to ultimate customers.
For further information, kindly contact: - For The Supreme Industries Limited Ms. Kavita Nagavekar RAJENDRAKUMAR Digitally signed by Ketchum Sampark Pvt. Ltd. JUGALKISHORE RAJENDRAKUMAR JUGALKISHORE SABOO 09619138779 SABOO Date: 2021.01.23 13:18:25 +05'30' Sd/- R. J. Saboo VP (Corporate Affairs) & Company Secretary