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Supreme Ind soars after robust Q4 performance

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Supreme Industries jumped 4.83% to Rs 2149.95 after the company's consolidated net profit surged 284.02% to Rs 450.38 crore in Q4 FY21 from Rs 117.28 crore in Q4 FY20.

Total income increased by 45.97% to Rs 2088.25 crore in Q4 FY21 over Q4 FY20. Profit before tax in the fourth quarter stood at Rs 528.48 crore, up 136.58% from Rs 223.38 crore reported in the same period last year.

Supreme Industries reported 109.27% rise in consolidated net profit to Rs 978.14 crore in the year ended 31 March 2021 from Rs 467.40 crore in the year ended 31 March 2020. Total income rose 15.39% to Rs 6361.33 crore in FY21 over FY20.

The company has become debt free during the year and has cash surplus funds of Rs 759 crore as on 31 March, 2021 as against net borrowings of Rs 217 crore as on 31 March 2020.

With expected growth in the businesses of several verticals, the company took steps to put new production units and also expand capacity in several of its' existing units and incurred capex of Rs 314 crore in the year 2020-21 and further committed capex of about Rs 198 crore, which shall fructify for production & usage during current year. During the current year i.e. 2021-22, the company envisages new capex in the range of about Rs. 400 crores (including carry forward commitments of Rs 198 crore at the beginning of the year).

The board of directors have recommended payment of final dividend of Rs 17 per equity share for the current year.

M. P. Taparia, Managing Director, The Supreme Industries, said: "The year under review was the toughest in the history of the company. It started with an extreme negative outlook. The company had to keep operations of it's 24 plants' closed for most part of the month of April 2020 and could begin in a gradual manner from last week of April onwards.

In the last 10 days, just before the closing of the year, the business has again witnessed tough situation as COVID-19 second wave started affecting the general public with alarming speed. The situation has become further volatile due to steep increase in Polymer prices. The increase in prices of PVC was steepest. In the last 40 years, international prices of PVC have never reached to the levels seen in April 2021 especially in India, some other Latin American countries and Turkey.

The company, however, has come out of these two extreme adverse situations with unparalleled performance where the profit of the Company was highest in it's 79 years of operations. This was partly supported by more than Rs 200 crore inventory gain on account of raw material price increase which accrued in it's operations for the year.

Even with temporary setback which the company is experiencing in the month of April 2021, the company has not reduced it's capex plan for the year 2021-22. In the current year, not only there will be brownfield expansion of capacities and new products at the existing plants but company has also embarked on putting up three new greenfield plants in the states of Assam, Orissa and Tamil Nadu during the current year."

Supreme Industries is a plastics product manufacturer, offering a wide and comprehensive range of plastic products in India.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Mon, May 03 2021. 15:08 IST