SSPL WEALTH PVT LTD

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Supreme Inds slumps as Q2 PAT slides 15% YoY

22-Oct-24 14:57 Hrs IST

Profit before tax dropped 15.63% year-on-year to Rs 269.53 crore in Q2 FY25. Operating profit slipped 8.74% to Rs 347.04 crore during the period under review. Operating profit margin stood at 15.17% in Q2 FY25, lower than 16.38% in Q2 FY24.

The overall turnover of value added products remains at Rs 907 crore during the current quarter as compared to Rs. 942 crore in the corresponding period of previous year.

The company has total cash surplus of Rs 674 crore as on 30th September, 2023 as against cash surplus of Rs 1,178 crore as on 31st March, 2024.

The company's board declared interim dividend of Rs 10 per share for the financial year 2024-25. The record date is on 30 October 2024.

M. P. Taparia, managing director, Supreme Industries, said, Plastic Pipe Systems business growth was severely affected due to extreme volatility in PVC resin prices, low spending on infrastructure in the first six months by Governments and extended monsoon.

Due to Red sea shipment movement blockage, the container productivity went down extremely. It laid to steep freight increase from Asian countries to India. 66% demand of PVC resin in India is met from imports. Out of that volume, more than 80% of import is coming from Asian countries. This has led to an increase in the cost of PVC resin between Mid-April to 30th June by 19%.

This type of price volatility in a very short period led to deep destocking in the entire trade channel. As the rainy season got extended, the demand revival for Agricultural pipe also remained subdued in the month September. Thus, the company has revised its guideline of 25 per cent volume growth in plastic pipe system to be between 16 to 18 per cent for this year, Taparia said.

Looking at the business outlook and opportunities, the company has made capex commitments including carry forward commitments of around Rs 1,500 crore. Total cash outflow during the current year is not likely to exceed Rs 1,000 crore and shall be funded entirely from internal accruals.

Supreme Industries is engaged mainly in production of plastic products and operate in various product categories like Plastic piping system, cross laminated films & products, protective packaging products, industrial molded components, molded furniture, storage & material handling products, performance packaging films and composite LPG cylinders.