The Supreme Industries (SUPREMEIND) Q4 01/02 earnings summary

Executive summary

• FY ended June 30, 2002 turnover was Rs 678.05 crore, including polymer trading; comparisons are affected by 15 months of merged film operations versus 12 months in the prior year.

• Polymer processing rose 8.26% to 83,499 tonnes; exports totaled Rs 38.37 crore.

Financial highlights

• Net sales were Rs 591.27 crore, up from Rs 465.27 crore; total income was Rs 594.65 crore versus Rs 468.16 crore.

• Operating profit was Rs 91.06 crore; reported PBT was Rs 12.02 crore and PAT Rs 11.08 crore, versus Rs 3.23 crore and Rs 2.76 crore, respectively, in FY2000-01.

• Interest expense rose to Rs 45.54 crore from Rs 41.77 crore; depreciation increased to Rs 33.50 crore from Rs 25.71 crore.

• Recommended dividend was 60%, or Rs 6 per equity share, versus 30% or Rs 3 per share in the prior year.

Outlook and guidance

• Polymer processing growth of around 12% was expected in FY2002-03; piping-system business was projected to grow 20%.

• FY2002-03 capital expenditure was estimated at Rs 10 crore, with borrowing reduction targeted at around Rs 50 crore and debt/equity of 1:1 targeted by December 2003.

• Food serviceware aimed to use its 2,500-tonne capacity fully in FY2002-03; Durgapur furniture capacity expansion to 8,500 tonnes was expected online by end-October 2002.

• A three-year furniture and crates capacity target of 10,000 tonnes was under consideration, with investment of around Rs 25 crore subject to feasibility.