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Plastic products manufacturer Supreme Industries today posted a 22.8% decline in net profit for the third quarter ended March 31 at Rs 58.54 crore against Rs 75.83 crore in the corresponding quarter last year.
The company, which follows July-June as financial year, reported a 9.54% rise in total income during the quarter at Rs 1,005.23 crore compared to Rs 917.68 crore in the year-ago period.
The decline was attributed to "the continuing slowdown in industrial and material handling product segment.."
This was coupled with hailstorm and unseasonal rains during February and March in many parts of the country affecting the crops, it said.
The company statement also said it "envisages annual growth in volume and product value of about 6% and 16-18%, respectively over the previous year".
Supreme Industries further said it has received the approval from TUV Rhienland for its 33.3 and 24.5 litres of LPG cylinders.
It has also received an approval from Korean Gas Safety Corporation for its 33.3 litre cylinders.
"Supreme Industries is now geared up to execute its first export order of 50,000 cylinders, supply of which is likely to commence during Q1 FY15," the release said.
During the quarter, the company also negotiated sale of about 11,537 sqft of premise at an aggregate consideration of Rs 21.70 crore and the transaction is likely to be completed in the current quarter, it said.
Supreme Industries further said it has curtailed its capex plan from Rs 230 crore to Rs 170 crore due to the slowdown in the industry.
"The company has purchased the required land for setting up its plastic product complex at Kharagpur in West Bengal and is in the process of taking other effective steps for the same," the release said.
Supreme Industries offers a wide and comprehensive range of plastic products and operates in various segments including plastics piping systems, protective packaging products, industrial components, material handling systems and cross laminated polyethylene films.
