Supreme Industries tumbles 5% after consolidated Q3 net profit declines 21% yoy at Rs246cr

24 Jan 2022 , 03:30 PM

Supreme Industries Limited, India’s leading Plastics product manufacturing company, announced its Unaudited Standalone & Consolidated financial results for the Quarter and Nine months ended December 31, 2021, at its Board Meeting held on Monday. 

The company reported consolidated net profit declined 21% yoy at Rs246cr in Q3FY22 from Rs312cr in Q3 FY21. Total consolidated income rose by 5% yoy to Rs1,948cr during the quarter under review from Rs1848cr in Q3FY21.

EBIDTA fell by 19% yoy to Rs369cr in Q3FY22 from Rs454cr in Q3FY21. EBIDTA margin was 19% in Q3FY22 as against 25% in Q3FY21.

The overall turnover of value added products decreased to Rs665cr during the current third quarter as compared to Rs758cr in the corresponding period of previous year resulting Degrowth about 12%.

The company has Cash Surplus funds of Rs148cr as on December 31, 2021 as against Cash Surplus funds of Rs331cr as on September 30, 2021.

MP Taparia, Managing Director, The Supreme Industries Limited, said, “the polymer prices were extremely volatile in the quarter. Starting November, PVC prices have dropped by Rs25 i.e. 15% per kg. The prices of other polymers also swung wildly during the quarter. Such a swing in the prices have affected overall demand for the products. The products, where demand were driven strongly by distributors have seen large scale destocking in the quarter.

Due to extended rainfall period in the quarter, the demand from agriculture and infrastructure was also deferred. Due to supply chain disruption, the company had suffered degrowth in CPVC pipe system. There was a steep fall in the sale of Plastics Pipe System, furniture and Packaging products. Overall the Company’s volume sale has gone down by around 18%. As the prices have stabilized and on recovery path the distribution channel has started normal working. The Company expects good volume growth in the fourth quarter in most of it’s businesses.”

At the brink of close of trade on Monday, Supreme Industries Ltd was trading at Rs2,127.05 per share down by Rs111.7 or 4.99% from its previous closing of Rs2,238.75 per share on the BSE.