Supreme Industries: Progressing as planned

MUMBAI: Supreme Industries has posted a 1.2% marginal growth in net profit for Dec'12 quarter to Rs 62.2 crore. However, that was mainly because the company didn't have any revenues from sale of real estate assets in Dec'12 quarter v/s Rs 48.5 cr in the Dec'11 quarter. The company's core plastics business is progressing on planned lines to achieve steady growth in years to come.

On the other hand the company's plastics business is continuing well. It reported a 3% volume growth driven by 17% growth in the Industrial segment and 4.5% growth in the packaging segment. A 47% spurt in CPVC pipe sales helped improve the realisation from pipes business. The overall operating profit margins were up 230 basis points to 14.7%.

The management mentioned it will spend Rs 400 crore on capex during FY13 out of which Rs 180 crore were already spent in the 6-month period ended Dec ’12. The company has already commenced 4000MT capacity of cross laminated films and is adding further 8000 MT by March 2013.

Further, the company expects the trial for its 50,000 MT expansion in plastic piping system to start by April 2013. It is also planning to launch its new product range of bathroom fitting using high end plastic material by the end of quarter. It expects Rs 50 crore turnover from fittings in FY14.

It has also announced interim dividend of Rs 2 per share (or 100%) with 29th Jan as record date. Things are progressing well for the company’s long-term growth plans.