Supreme Industries' consolidated net profit declined 5.46% to Rs 117.28 crore on 6.56% fall in net sales to Rs 1,430.49 crore in Q4 March 2020 over Q4 March 2019.
Consolidated profit before tax (PBT) jumped 29.18% to Rs 223.38 crore in Q4 FY20 over Q4 FY19. This was mainly on account on 12.23% year-on-year (YoY) fall in total expenses to Rs 1214.14 crore in the fourth quarter. Overall profitability was impacted by higher tax expenses, which jumped 117.15% YoY to Rs 106.10 crore in Q4 FY20. The result was announced during market hours today.
The plastic products manufacturer sold 1,03,200 MT of plastic goods and achieved net product turnover of Rs 1,380 crore during the 4th quarter of the current year against sales of 1,13,921 MT of plastic goods and achieved net product turnover of Rs 1,487 crore in the corresponding quarter of previous year achieving volume and product value degrowth of about 9% and 7%, respectively.
With respect to the impact of COVID-19 on its business, the company said that it expects to recover the carrying amount of trade receivables (measured at amortised cost of Rs 312.60 crore) and realize its inventories (worth Rs 890.57 crore).
It added that the impact of the global health pandemic may be different from that estimated as at the date of approval of these standalone financial statements. Considering the continuing uncertainties, the company will continue to closely monitor any material changes to future economic conditions.
M. P. Taparia, managing director, Supreme Industries, said: "At the end of the year i.e. beginning second half of March 2020 the business was severely affected due to Covid-19 Pandemic." He added that the company has not slowed down its investment plans, which was earlier delayed due to cessation of activities in different parts of the country as a result of the nationwide lockdown.
"Raw material scenario is likely to be comfortable. Prices have started showing increasing trend after reaching to bottoms during the year under review except PVC Resin. Overall it is expected that raw material prices shall remain range bound and affordable. The Company expects that by September this year the business should be returning to normalcy and will move to growth path by November, 2020", he said.
The scrip surged 8.17% to Rs 987. It has traded in the range of Rs 246.30 and Rs 263.80 so far during the day.
Supreme Industries is a plastics product manufacturer, offering a wide and comprehensive range of plastic products in India.
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