By: ICN Bureau
Last updated : January 25, 2022 10:16 am
The company’s envisaged capex plan of Rs. 521 crores for the year, including carried forward commitment of previous year is going smoothly.
Plastic products maker Supreme Industries reported a 21.31% decline in consolidated profit to Rs 245.72 crore for the quarter ended in December 2021. The company had posted a net profit of Rs 312.28 crore during the corresponding period last year.
Its revenue from operations was up 5.49 per cent to Rs 1,945.11 crore during the quarter under review as against Rs 1,843.80 crore in the corresponding period of the previous fiscal.
Commenting on the financial results, M P Taparia, MD, Supreme Industries, said : The Polymer prices were extremely volatile in the quarter. Starting November, PVC prices have dropped by Rs. 25 i.e. 15% per kg. The prices of other polymers also swung wildly during the quarter.
“Such a swing in the prices have affected overall demand for the products. The products, where demand were driven strongly by distributors have seen large scale destocking in the quarter. Due to extended rainfall period in the quarter, the demand from agriculture and infrastructure was also deferred. Due to supply chain disruption, the company had suffered degrowth in CPVC pipe system.
“There was a steep fall in the sale of Plastics Pipe System, furniture and Packaging products. Overall the Company’s volume sale has gone down by around 18%. As the prices have stabilized and on recovery path the distribution channel has started normal working. The Company expects good volume growth in the fourth quarter in most of it’s businesses.
“The Company’s progress in putting up plants at Guwahati, Cuttack and Erode are now moving. All these plants will be operational between April to August this year. The start-up is delayed due to supply chain disruption due to Covid-19 pandemic. The same is now ebbing down.”
The company’s envisaged capex plan of Rs. 521 crores for the year, including carried forward commitment of previous year is going smoothly.