The Supreme Industries (SUPREMEIND) Q4 02/03 earnings summary

Executive summary

• FY2002-03 turnover was Rs 796.22 crore, including polymer trading; polymer processing reached 91,913 tonnes, up from 86,947 tonnes, with merged Siltap operations included for 11 months.

• Profit before depreciation, exceptional items and tax rose to Rs 55.03 crore from Rs 45.52 crore; net profit was Rs 14.28 crore, including notable exceptional charges and merger-related accounting effects.

• Recommended dividend was 70%, or Rs 7 per equity share, versus 60% in the prior year.

Financial highlights

• Sales were Rs 792.42 crore; less excise duty of Rs 99.05 crore, net sales were Rs 693.37 crore, versus Rs 591.27 crore in 2001-02.

• Total income was Rs 697.17 crore; operating profit was Rs 86.47 crore, gross profit Rs 55.03 crore, and profit before tax and exceptional items Rs 18.55 crore.

• Profit after tax was Rs 15.01 crore; net profit after prior-year adjustments was Rs 14.28 crore, versus Rs 11.06 crore in 2001-02.

• Export goods were valued at $7.63 million, versus $4.96 million; export turnover on an FOB basis was Rs 35.12 crore, versus Rs 30.54 crore.

• Capital expenditure was Rs 24.02 crore, funded through internal accruals, primarily for capacity expansion, new moulds, product launches and de-bottlenecking.

Outlook and guidance

• Overall polymer-processing growth of ~12% was expected in FY2003-04; lower interest rates and borrowing costs were also anticipated.

• Pipe-system volumes were expected to benefit from monsoon progress and housing demand, with ~20% growth forecast; injection-moulded fittings aimed for ~20% volumetric growth.

• FY2003-04 capex was expected to be ~Rs 12 crore, including PPRC pipes, moulds and dies; ~Rs 1.50 crore was earmarked for computerization and ERP upgrades.

• XF Film sales were projected at ~3,850 tonnes for the current year, versus 3,258 tonnes in the prior 11-month period, with exports expected to drive the increase.

• Flexible packaging film business was expected to grow by over 15%; food serviceware export share targeted 80%, from nearly 70% of production.