Supreme Industries posts consolidated Q1FY24 PAT to Rs. 215.54 Cr

Supreme Industries posts consolidated Q1FY24 PAT to Rs. 215.54 Cr

The overall turnover of value-added products remains at Rs. 756 crores during the current quarter as compared to Rs. 761 crores in the corresponding period of previous year

  • By ICN Bureau | July 30, 2023

Supreme Industries Limited, India’s leading Plastics product manufacturing company, has reported Consolidated financial results for the period ended June 30, 2023.

The company has posted net profit / (loss) of Rs. 215.54 crores for the period ended June 30, 2023 as against net profit / (loss) of Rs. 359.43 crores for the period ended March 31, 2023. It posted net profit of Rs.213.85 crores for the period ended June 30, 2022.

The company has reported total income of Rs. 2382.78 crores during the period ended June 30, 2023 as compared to Rs. 2609.71 crores during the period ended March 31, 2023. It reported total income of Rs.2210.53 crores during the period ended June 30, 2022.

 The company has total Cash Surplus of Rs. 951 crores as on 30th June, 2023 as against Cash Surplus of Rs. 738 crores as on 31st March, 2023.

M. P. Taparia, Managing Director, The Supreme Industries Limited, said: “Polymer prices witnessed a downward bias and continue to fall albeit in range bound manner. During the quarter, prices of various polymers fell between 5 to Rs. 8 per kg except for Polypropylene which fell down by Rs.13 per kg causing moderate inventory losses across the product segments of the Company.

The Company has taken in hand a project to make PVC window & Doors at its’ newly acquired 32 Acres site 15 Kms away from Kanpur (U.P.). The initial capacity planned will be 10,000 Tons per annum. The Company intends to sell window profile & complete window from this site. Later on Company will put up window making facilities at several of its’ manufacturing sites. The envisaged investment in this project will be about Rs.160 crores and after attaining full capacity, the Company may add additional turnover of about Rs. 350 Crores annually in this segment.

The Company is ready to seize the business opportunities and continues to commit desired investment. During the year Company has plans to add 4 additional systems viz. (i) PP multilayer silent pipe system (ii) Gas Piping system (iii) PE/AL/PE piping system and (iv) PPR pipe system for Industrial applications along with its existing 36 Systems in its’ flagship Plastics Piping Business.

Project execution has commenced for setting up of dedicated greenfield unit at Malanpur (M.P.) to manufacture varieties of Industrial and ball valves. The Company continues to commit new investment to increase range of value-added products in its piping business. Expansion of capacities and enlarging the product basket is underway, which would increase installed capacities of this division to 7,50,000 M.T. per annum by end of FY 24 against present capacity of 6,00,000 M.T. per annum.

The company continues to focus more on Made-up product sales from Cross Laminated Film which would help in better realizations and improved profitability. Company’s Plan to introduce newly developed Cross Plastic Film is progressing well and plant with a capacity of 2500 MT per annum should be in operation by end of FY 24.

The company’s furniture business is expected to grow well during the year backed by softening of PP prices and introduction of several premium products in the range. The Company has 244 no. of show rooms as on 30th June,2023 and are being added regularly where quality furniture produced by the Company is available.

In Industrial Component division, Passenger Vehicle segment in auto sector is continuing its bullish trend and expected to remain positive during the year. Impending festive season and overall positivity in the economy should help the appliance segment of the division gather steam going forward.

The Material Handling Division’s product portfolio is doing reasonably well keeping in pace with the major drivers of Material Handling products like Automobile, FMCG, Whitegoods and Retail. To meet the diverse needs of the customers, newer products are being introduced. Supplies of tailor-made solutions with customized crates are growing and most models of garbage bins range have started selling well.

Composite LPG Cylinder division continues to supply new age composite LPG Cylinders to Indian Oil Corporation against its LOI as per schedule being received. It is also pursuing vigorously with other Oil Marketing Companies for promoting Composite Cylinders in domestic market showcasing the safety to human life what they provide. Efforts continue to expand geographical reach and add new customers which is a lengthy process due to nature of the product.

In Protective Packaging Division, strategy to drive growth both in volume and value with enhanced profitability across product lines is yielding positive results. Division continues to focus on development of new applications, value engineering to provide best product with customized solutions and increase its export business by strengthening distribution reach in newer markets.

The Performance Packaging Division of the Company is functioning optimally with its existing capacity. The division serves different market segments in food and various non- food industries and working towards post extrusion value added products for better margins.

The Company has a capex plan in excess of Rs. 750 Crores for the current year including carry forward commitments of previous year. Entire Capex shall be funded from internal accruals.”


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