SUPREME INDUSTRIES

The Supreme Industries Limited (Supreme), India's leading plastics product manufacturing company, announced its audited standalone and consolidated financial results for the quarter and year ended March 31, 2024. The company reported impressive growth in sales volume, revenue, and operating profit, despite challenges posed by the global economic slowdown. Financial Highlights: Sales volume increased by 26.30% year-on-year to 639,701 MT in FY24 Total income grew by 10.43% year-on-year to Rs. 10,251.98 crores in FY24 Operating profit surged by 29.05% year-on-year to Rs. 1,548.54 crores in FY24 PAT (before OCI) rose by 32.92% year-on-year to Rs. 1,016.17 crores in FY24 The company's Board of Directors recommended a final dividend of 1100% (Rs. 22 per equity share), which, along with the interim dividend of 400% (Rs. 8 per equity share), amounts to a total dividend of 1500% (Rs. 30 per equity share) for FY24. Capex Plans: Supreme Industries has outlined a capex plan of approximately Rs. 1,500 crores, including carry-forward commitments of Rs. 496 crores. The proposed investments will focus on expanding manufacturing capacities across various product segments, setting up new facilities, and introducing innovative products to cater to the growing demand in domestic and international markets. The entire capex will be funded through internal accruals. Business Outlook: Mr. M. P. Taparia, Managing Director of The Supreme Industries Limited, expressed optimism about the company's future prospects. He highlighted that the Indian economy has achieved the highest growth among all advanced economies, and the expected above-normal monsoon augurs well for containing inflation. The government's initiatives to boost manufacturing and improve infrastructure are expected to drive demand for the company's products. Supreme Industries anticipates a 20% volume growth in the current year, supported by the expanding plastic raw material production capacity in India and surrounding countries. The company's plastic piping systems division achieved a remarkable 33% volume growth in FY24, and the entire range of plastics products is poised for growth in the coming year. The company is actively pursuing export opportunities and has received encouraging responses to its initiatives. To meet the growing demand for piping products, Supreme Industries is undertaking brownfield expansions at existing manufacturing sites and setting up new plants near Patna (Bihar) and Vijayawada (Andhra Pradesh). In addition to expanding its product portfolio in the plastic piping systems division, the company is focusing on bath fittings, sanitaryware, and PVC profiles. The cross-laminated film (XF) and products business is expected to gain momentum with the commencement of cross plastics manufacturing in the second quarter of FY25. The company's furniture, industrial components, material handling, composite cylinders, performance films, and protective packaging divisions are also expected to contribute to its growth story, driven by strategic initiatives, new product development, and market expansion.

Tag: SUPREME INDUSTRIES

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