Supreme Industries reported 14.52% decline in consolidated net profit to Rs 210.03 crore on 18.8% rise in revenue from operations to Rs 2,310.71 crore in Q3 FY23 over Q3 FY22.
Profit before tax declined 12.83% to Rs 273.32 crore in Q3 FY23 compared with Rs 313.54 crore in Q3 FY22.Total expense jumped 23.03% to Rs 2,073.26 crore in Q3 FY23 as against Rs 1,685.16 crore in Q3 FY22. Cost of material consumed stood at Rs 1,617.50 crore (up 22.77% YoY), Employee Benefit Expense was at Rs 95.87 crore (up 8.92% YoY).
Operating profit declined 10.20% to Rs 330.94 crore as on 31 December 2022 as against Rs 368.53 crore as on 31 December 2021. Operating profit margin stood at 14.27% in Q3 FY23, lower than 18.92% in Q3 FY22.
The overall turnover of value added products increased to Rs 826 crore during the 3rd quarter of current year as compared with Rs 665 crore in the corresponding quarter of previous year achieving growth of 24%.
The company has total cash surplus of Rs 687 crore as on 31st December 2022 as against cash surplus of Rs 518 crore as on 31st March 2022.
M. P. Taparia, managing director, Supreme Industries, said, "plastics pipe system business profit was impacted due to fall in PVC prices till November, 2022. Pipe system prices, in spite of increase in PVC prices remain affordable. Demand from Housing, Agriculture and Infrastructure is quite improving.
The company has achieved 51% volume growth in third quarter on a lower base of corresponding quarter in the previous year, as huge de-stocking took place in that quarter. Company expects to maintain the growth momentum, with increased range of system which are commissioned in this year along with affordable raw material prices.
The prices of various Polymers particularly polypropylene (PP), low denier polyethylene (LDPE) and Poly Vinyl Chloride (PVC) have gone down between Rs 41 per kg to Rs 66 per kg since beginning of the year till November i.e. a reduction between 28% to 46% before rising a bit during December & January till now.
Most severe fall was in PVC resin which also resulted in substantial inventory losses part of which is recovered during December and expected further recover in last quarter of the current year.
The company's capex plan for the year 2022-23 of about Rs 700 crore including carry forward commitment of Rs 280 crore is progressing with a little delay from the envisaged schedule. Entire capex is being funded from internal accruals."
Supreme Industries is India's leading processor of plastic. The company has a diverse product portfolio, comprising piping systems, cross laminated films and products, protective packaging products, industrial moulded components, moulded furniture, storage and material handling products, performance packaging films and composite, and liquefied petroleum gas cylinders. It has 25 facilities across India.
The scrip rose 1.97% to Rs 2,398.90 on the BSE.
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