Supreme Industries zooms 7.51%; know why?

Supreme Industries Limited, India’s leading plastics product manufacturing company, announced its unaudited standalone and consolidated financial results for the quarter and a half year that ended 30 September 2022.

The company reported an 8% YoY increase in revenue from operations to Rs 2,086.58 crore in Q2FY23. Net profit fell by 54% on a YoY basis to Rs 104.09 crore. EBITDA came in at Rs 147.25 crore in Q2FY23, down by 53% from Rs 310.95 crore in Q2FY22. EBITDA margin contracted to 7% during the quarter against 16% in the same quarter last year.

The board of directors has declared an interim dividend of Rs 6 per share for the financial year 2022-23. The record date for the same is 9 November 2022.

The overall turnover of value-added products increased to Rs 798 crore during the second quarter of the current year as compared to Rs 758 crore in the corresponding quarter of the previous year achieving growth of 5%. The company has a total cash surplus of Rs 493 crore as on 30 September 2022 as against a cash surplus of Rs 518 crore as on 31 March 2022.

During the quarter, the company introduced Olefins fittings, and PEX Piping System, which was well received. Further, new systems are going to be launched during the third quarter to augment the range offered to the market.

The company’s furniture division has done well during the first half of the year. It’s turnover has grown from Rs 159 crore to Rs 206 crore, with improved profitability and 17% volume growth over the corresponding period of the previous year.

To quote M. P. Taparia, Managing Director, The Supreme Industries Limited from a press release filed with the bourses, “The company is fully geared to cater to increased demand of it’s product with increased available capacity by Greenfield projects at three locations starting from July and shall be operational fully by December this year and also brown field expansion of capacities at other locations. The company expects to achieve 25% plus volume growth in this segment for the year compared to last year business.” 

On Monday, shares of Supreme Industries closed the session with gains of 6.27% at Rs 2,165 per share on NSE.