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

Overview of Consolidated Results:

• The overall turnover of value added products decreased to Rs. 665 crores during the current 3rd quarter as compared to Rs. 758 crores in the corresponding period of previous year resulting Degrowth about 12%.
• The Company has Cash Surplus funds of Rs. 148 crores as on 31st December, 2021 as against Cash Surplus funds of Rs. 331 crores as on 30th Sep, 2021.

Business Outlook:

Mr. M. P. Taparia, Managing Director, The Supreme Industries Limited, said:

The Polymer prices were extremely volatile in the quarter. Starting November, PVC prices have dropped by Rs. 25 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.

The Company’s progress in putting up plants at Guwahati, Cuttack and Erode are now moving. All these plants will be operational between April to August this year. The start-up is delayed due to supply chain disruption due to Covid-19 pandemic. The same is now ebbing down.

Material handling division has shown 17% volume growth. Company continues to add new product range and deepen its market reach in this division.

Furniture division has shown 18% volume de-growth during the quarter, as the demand was quite weak.

The composite cylinder has received encouraging response from Indian consumers. With expected surge in demand from domestic sources and also from international market, the company is keeping itself ready to double it’s capacity from existing 5 lakhs Cylinder per annum at it’s existing plant in Gujarat in a short span of 8 to 9 months.

The demand for performance packaging film has shown 50% growth in volume mostly from export market.

Due to chip shortage, industrial component business has de-grown in the quarter by 3.5% in volume.

The company’s raw material cost has gone quite high in XF division. The revised increase in prices of company products have gone into effect with a time lag only by January 2022. This has affected the margin of this product segment steeply in the quarter.

There was demand destruction in this segment due to look alike competitor’s product with quite inferior properties. Company is confident that the demand will revive for its product because the consumers will know the real value of look-alike products.

Protective packaging business has shown a de-growth of 10% in volume.

The Company’s envisaged Capex plan of Rs. 521 crores for the year, including carried forward commitment of previous year is going smoothly.

Company’s initiative of launching of several new products and systems in it’s various segments have been received positively.

With the Covid-19 pandemic is now moving towards endemic, the Company is quite optimistic of good business growth in the fourth quarter and coming years.