Supreme Industries reported a 28.1% fall in consolidated net profit to Rs 323.86 crore in Q4 FY22 as from Rs 450.38 crore posted in Q4 FY21.
Consolidated revenue from operations rose 22.7% to Rs 2565.69 crore in Q4 FY22 from Rs 2090.96 crore posted in Q4 FY21. The company's operating profit fell 20.5% to Rs 460.98 crore in Q4 FY22 from Rs 580 crore posted in Q4 FY21. Operating profit margin fell to 17.97% in Q4 FY22 from 27.74% in Q4 FY21.Profit before tax in the fourth quarter stood at Rs 408.8 crore in Q4 FY22, declining 22.6% from Rs 528.48 crore reported in the same period last year. Total expenses spiked by 36.3% to Rs 2226.36 crore in Q4 FY22 over Q4 FY21.
On full year basis, the company reported a 1% decline in net profit to Rs 968.39 crore in financial year ended 2022 as compared to financial year ended 2021. Net sales rose 22.31% to Rs 7,772.82 crore in FY22 over FY21.
The overall turnover of value added products increase to Rs 2911 crores as compared to Rs. 2480 crores in the previous year achieving growth of 17%.
The company reported cash surplus of Rs 518 crore as on 31 March 2022 as against cash surplus of Rs 759 crores as on 31 March 2021.
S J Taparia, executive director of Supreme Industries said, The first quarter of the year which normally remains most business friendly for the Company (considering its product profile) witnessed quite a weak demand for most of the product segments of the Company. Polymer prices also witnessed relentless upward march which continued up to middle of November 2021. Subsequently, prices fell quite steeply (especially in PVC Resin) which, virtually destroyed the demand of Plastic Pipe Systems albeit temporarily. Even in such extreme adverse circumstances, company maintained a positive outlook for its growth plans. It persisted with its large investment plan with full confidence that business will be quite promising in the year 2022-23 and beyond.
He further added, The company continues to remain a market leader in the Premium Range of Plastic Furniture. The company's furniture range is sold on various e-commerce portals & retailers who are being serviced through company's network of 1306 channel partners. The company has launched its own portal for showcasing to its consumers its wide range of premium products and made it available for them from the comforts of their home with economy opening up, the company plans to launch variety of new models during 22-23 which will help in overall growth in the current year.
Taparia further said, Most of the business segments are now showing improved demand prospects. The company continues with its investment plans vigorously. The company envisages good business growth opportunities in all its segments going forward as the impact of pandemic has ebbed and several initiatives are being taken by the Government to put the country on higher growth path.
Meanwhile, the company's board recommended a final dividend of Rs 18 per share for the financial year ended 31 March 2022.
Supreme Industries is a plastics product manufacturer, offering a wide and comprehensive range of plastic products. Shares of Supreme Industries gained 0.75% to close at Rs 1949.75 on BSE.
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