SSPL WEALTH PVT LTD

Supreme Industries

24-Jan-22 17:55 Hrs IST

SupremeIndustries consolidated net sales increased 5.49% to Rs 1945.11 crore in Q3FY22compared to Q3FY21. Sales of Plastics Piping Products segment has gone up 0.68%to Rs 1,147.93 crore (accounting for 59.02% of total sales). Sales ofIndustrial Products segment has gone up 25.65% to Rs 271.52 crore (accountingfor 13.96% of total sales). Sales of Packing Products segment rose 16.30% to Rs369.73 crore (accounting for 19.01% of total sales). Sales of Consumer Productssegment has gone up 9.18% to Rs 127.46 crore (accounting for 6.55% of totalsales). Sales of Others segment has gone down 46.12% to Rs 28.47 crore(accounting for 1.46% of total sales).

Operatingprofit margin has declined from 21.78% to 16.34%, leading to 20.84% decline inoperating profit to Rs 317.88 crore. Raw material cost as a % of total sales(net of stock adjustments) increased from 59.56% to 66.57%. Purchase offinished goods cost fell from 2.73% to 1.96%. Employee cost decreased from4.49% to 4.45%. Other expenses fell from 11.04% to 10.96%. Power and Oil fuelcost fell from 3.06% to 2.58%.

Otherincome fell 20.11% to Rs 2.94 crore. PBIDT fell 20.83% to Rs 320.82 crore. Profit before interest, tax and other unallocable items (PBIT) hasslumped 24.00% to Rs 263.68 crore. PBITof Plastics Piping Products segment fell 24.33% to Rs 189.39 crore (accountingfor 71.83% of total PBIT). PBIT ofIndustrial Products segment rose 11.77% to Rs 22.41 crore (accounting for 8.50%of total PBIT). PBIT of Packing Productssegment fell 38.30% to Rs 24.60 crore (accounting for 9.33% of totalPBIT). PBIT of Consumer Products segmentfell 6.04% to Rs 21.45 crore (accounting for 8.13% of total PBIT). PBIT of Others segment fell 58.12% to Rs 5.83crore (accounting for 2.21% of total PBIT).

PBITmargin of Plastics Piping Products segment fell from 21.95% to 16.50%. PBIT margin of Industrial Products segmentfell from 9.28% to 8.25%. PBIT margin ofPacking Products segment fell from 12.54% to 6.65%. PBIT margin of ConsumerProducts segment fell from 19.56% to 16.83%. PBIT margin of Others segment fellfrom 26.34% to 20.48%. Overall PBIT margin fell from 18.82% to 13.56%.

Provisionfor interest fell 79% to Rs 0.46 crore. PBDT fell 20.52% to Rs 320.36 crore. Provision for depreciation rose 4.64% to Rs 57.47 crore.

Profitbefore tax down 24.49% to Rs 262.89 crore. Share of profit/loss was 4.05% lower at Rs 50.65 crore. Provision for tax was expense of Rs 67.82crore, compared to Rs 88.64 crore. Effective tax rate was 21.63% compared to 22.11%.

Minorityinterest was nil in both the periods. Net profit attributable to owners of the company decreased 21.31% to Rs245.72 crore.

Promoters'stake was 48.85% as of 31 December 2021 compared to 48.85% as of 31 December2020.

For year-to-date (YTD)results analysis

Netsales of Supreme Industries have increased 22.08% to Rs 5215.73 crore. Sales ofPlastics Piping Products segment has gone up 17.96% to Rs 3,246.26 crore(accounting for 62.24% of total sales). Sales of Industrial Products segment has gone up 54.56% to Rs 723.39crore (accounting for 13.87% of total sales). Sales of Packing Products segment rose 22.86% to Rs 891.14 crore(accounting for 17.09% of total sales). Sales of Consumer Products segment hasgone up 24.71% to Rs 287.09 crore (accounting for 5.50% of total sales). Sales of Others segment has gone down 29.95%to Rs 67.85 crore (accounting for 1.30% of total sales).

Operatingprofit margin has declined from 18.13% to 16.31%, leading to 9.83% rise inoperating profit to Rs 850.68 crore. Raw material cost as a % of total sales(net of stock adjustments) increased from 61.42% to 66.85%. Purchase offinished goods cost fell from 2.32% to 1.81%. Employee cost decreased from5.22% to 4.68%. Other expenses fell from 12.42% to 11.03%. Power and Oil fuelcost fell from 3.46% to 2.79%.

Otherincome rose 31.06% to Rs 11.35 crore. PBIDT rose 10.07% to Rs 862.03crore. Profit before interest, tax andother unallocable items (PBIT) have jumped 10.46% to Rs 693.00 crore. PBIT of Plastics Piping Products segment rose13.07% to Rs 524.97 crore (accounting for 75.75% of total PBIT). PBIT of Industrial Products segment rose120.21% to Rs 53.82 crore (accounting for 7.77% of total PBIT). PBIT of Packing Products segment fell 19.78%to Rs 67.22 crore (accounting for 9.70% of total PBIT). PBIT of Consumer Products segment rose 27.56%to Rs 39.57 crore (accounting for 5.71% of total PBIT). PBIT of Others segment fell 68.88% to Rs 7.42crore (accounting for 1.07% of total PBIT).

PBITmargin of Plastics Piping Products segment fell from 16.87% to 16.17%. PBIT margin of Industrial Products segmentrose from 5.22% to 7.44%. PBIT margin ofPacking Products segment fell from 11.55% to 7.54%. PBIT margin of Consumer Products segment rosefrom 13.47% to 13.78%. PBIT margin ofOthers segment fell from 24.61% to 10.94%. Overall PBIT margin fell from 14.68% to 13.29%.

Provisionfor interest fell 80.87% to Rs 3.27 crore. PBDT rose 12.10% to Rs 858.76 crore. Provision for depreciation rose 8.04% to Rs 170.7 crore.

Profitbefore tax grew 13.15% to Rs 688.06 crore. Share of profit/loss was 78.16% higher at Rs 134.78 crore. Provision for tax was expense of Rs 178.25crore, compared to Rs 155.98 crore. Effective tax rate was 21.66% compared to 22.81%. Net profitattributable to owners of the company increased 22.14% to Rs 644.59 crore.

Promoters'stake was 48.85% as of 31 December 2021 compared to 48.85% as of 31 December2020.

FY 2021 consolidatedresults

Netsales (including other operating income) of Supreme Industries has increased15.34% to Rs 6357.06 crore. Sales ofPlastics Piping Products segment has gone up 18.98% to Rs 4,098.79 crore(accounting for 64.48% of total sales). Sales of Industrial Products segment has gone up 13.06% to Rs 761.12crore (accounting for 11.97% of total sales). Sales of Packing Products segment rose 7.90% to Rs 1,035.06 crore(accounting for 16.28% of total sales). Sales of Consumer Products segment has gone down 7.57% to Rs 354.21crore (accounting for 5.57% of total sales). Sales of Others segment has gone up 111.49% to Rs 107.88 crore(accounting for 1.70% of total sales).

Operatingprofit margin has jumped from 15.14% to 20.20%, leading to 53.89% rise inoperating profit to Rs 1,284.25 crore. Raw material cost as a % of total sales (net of stock adjustments) decreasedfrom 65.17% to 60.65%. Purchase of finished goods cost rose from 0.83% to1.99%. Employee cost increased from 4.91% to 5.00%. Other expenses fell from 14.41% to11.66%.

Otherincome rose 198.60% to Rs 4.27 crore. Provision for interest fell 52.95% to Rs 9.5 crore. Loan funds declined from Rs 440.42 crore asof 31 March 2020 to Rs 26.27 crore as of 31 March 2021. Inventories declined from Rs 890.57 crore asof 31 March 2020 to Rs 760.77 crore as of 31 March 2021. Sundry debtors were higher at Rs 389.83 croreas of 31 March 2021 compared to Rs 312.84 crore as of 31 March 2020. Cash and bank balance rose to Rs 768.40 croreas of 31 March 2021 from Rs 231.39 crore as of 31 March 2020. Investments rose to Rs 336.59 crore as of 31March 2021 from Rs 207.30 crore as of 31 March 2020 .

Profitbefore interest, tax and other unallocable items (PBIT) has jumped 66.35% to Rs1,093.23 crore. PBIT of Plastics PipingProducts segment rose 78.34% to Rs 821.29 crore (accounting for 75.13% of totalPBIT). PBIT of Industrial Productssegment rose 94.78% to Rs 63.46 crore (accounting for 5.80% of total PBIT). PBIT of Packing Products segment rose 22.74%to Rs 124.59 crore (accounting for 11.40% of total PBIT). PBIT of Consumer Products segment rose 3.58%to Rs 59.66 crore (accounting for 5.46% of total PBIT). PBIT of Others segment rose 387.53% to Rs24.23 crore (accounting for 2.22% of total PBIT).

PBITmargin of Plastics Piping Products segment rose from 13.37% to 20.04%. PBIT margin of Industrial Products segmentrose from 4.84% to 8.34%. PBIT margin ofPacking Products segment rose from 10.58% to 12.04%. PBIT margin of Consumer Products segment rosefrom 15.03% to 16.84%. PBIT margin ofOthers segment rose from 9.74% to 22.46%. Overall PBIT margin rose from 11.92% to 17.20%.

Provisionfor depreciation rose 3.46% to Rs 212.79 crore. Fixed assets increased to Rs 1,754.12 crore as of 31 March 2021 from Rs1,684.64 crore as of 31 March 2020. Intangible assets declined from Rs 16.02 crore to Rs 11.18 crore.

Profitbefore tax grew 74.76% to Rs 1,066.23 crore. Share of profit/loss was 367.77%higher at Rs 145.99 crore. Provision fortax was expense of Rs 234.08 crore, compared to Rs 173.92 crore. Effective tax rate was 19.31% compared to27.12%.

Netprofit attributable to owners of the company increased 109.27% to Rs 978.14crore.

Promoters'stake was 48.85% as of 31 March 2021 compared to 49.94% as of 31 March 2020.

Thestock trades at Rs 2130.

Supreme Industries: Consolidated Result
Particulars	2112 (03)	2012 (03)	Var. (%)	2112 (09)	2012 (09)	Var. (%)	2103 (12)	2003 (12)	Var. (%)
Sales	1945.11	1843.80	5	5215.73	4272.47	22	6357.06	5511.54	15
OPM (%)	16.3	21.8		16.3	18.1		20.2	15.1
OP	317.88	401.56	-21	850.68	774.51	10	1284.25	829.55	55
Profit from construction business	0.0	0.0		0.0	0.0		0.00	5.00
OP including construction business	317.88	401.56	-21	850.68	774.51	10	1284.25	834.55	54
Other inc.	2.94	3.68	999	11.35	8.66	999	4.27	1.43	199
PBIDT	320.82	405.24	-21	862.03	783.17	10	1288.52	835.98	54
Interest	0.46	2.19	-79	3.27	17.09	-81	9.50	20.19	-53
PBDT	320.36	403.05	-21	858.76	766.08	12	1279.02	815.79	57
Dep.	57.47	54.92	5	170.70	157.99	8	212.79	205.68	3
PBT before Share of profit of Associates	262.89	348.13	-24	688.06	608.09	13	1066.23	610.11	75
Share of profit of Associates	50.65	52.79	-4	134.78	75.65	78	145.99	31.21	368
PBT before EO	313.54	400.92	-22	822.84	683.74	20	1212.22	641.32	89
EO	0.00	0.00		0.00	0.00		0.00	0.00
PBT after EO	313.54	400.92	-22	822.84	683.74	20	1212.22	641.32	89
Total Tax	67.82	88.64	-23	178.25	155.98	14	234.08	173.92	35
PAT	245.72	312.28	-21	644.59	527.76	22	978.14	467.40	109
EPS (Rs) *	#	#		#	#		77.0	36.8
* Annualised on current equity of Rs 25.41 crore. Face Value: Rs 2 each
# EPS not annualised due to seasonality of business
EO: Extra Ordinary items, EPS is calculated after excluding EO and relevant tax
Figures in Rs crore, Var (%) exceeding 999 is restricted to 999
Source: Capitaline Database

Supreme Industries : Consolidated Segment Results
	% of (Total)	2112 (03)	2012 (03)	Var.(%)	% of (Total)	2112 (09)	2012 (09)	Var.(%)	% of (Total)	2103 (12)	2003 (12)	Var.(%)
Sales
Plastics Piping Products	59	1,147.93	1140.2	1	62	3,246.26	2,752.04	18	64	4,098.79	3,444.87	19
Industrial Products	14	271.52	216.1	26	14	723.39	468.03	55	12	761.12	673.19	13
Packaging Products	19	369.73	317.92	16	17	891.14	725.33	23	16	1,035.06	959.27	8
Consumer Products	7	127.46	116.74	9	6	287.09	230.21	25	6	354.21	383.2	-8
Others	1	28.47	52.84	-46	1	67.85	96.86	-30	2	107.88	51.01	111
Total Reported Sales	100	1,945.11	1,843.80	5	100	5,215.73	4,272.47	22	100	6,357.06	5,511.54	15
PBIT
Plastics Piping Products	72	189.39	250.27	-24	76	524.97	464.28	13	75	821.29	460.52	78
Industrial Products	8	22.41	20.05	12	8	53.82	24.44	120	6	63.46	32.58	95
Packing Products	9	24.6	39.87	-38	10	67.22	83.79	-20	11	124.59	101.51	23
Consumer Products	8	21.45	22.83	-6	6	39.57	31.02	28	5	59.66	57.6	4
Others	2	5.83	13.92	-58	1	7.42	23.84	-69	2	24.23	4.97	388
Total PBIT	100	263.68	346.94	-24	100	693.00	627.37	10	100	1,093.23	657.18	66
Less : Interest		0.46	2.19	-79		3.27	17.09	-81		22.13	20.19	10
Add: Other un-allcoable		50.32	56.17	-10		133.11	73.46	81		141.12	4.33	999
PBT		313.54	400.92	-22		822.84	683.74	20		1,212.22	641.32	89