The Supreme Industries (SUPREMEIND) Q4 04/05 earnings summary

Executive summary

• FY ended June 30, 2005: turnover was ₹941.53 crore, including ₹33.84 crore from polymer trading and other non-plastic products; profit before depreciation, exceptional items and tax was ₹65.00 crore.

• Polymer processing fell 4.61% to 95,439 tonnes, while exports rose to $15.14 million from $11.22 million.

• Recommended dividend remained ₹9 per equity share, equal to 90% of face value.

Financial highlights

• Net sales after excise duty were ₹814.10 crore versus ₹796.27 crore; total income was ₹824.13 crore versus ₹798.69 crore.

• Profit before tax and exceptional items rose to ₹25.70 crore from ₹22.09 crore; profit after tax was ₹23.65 crore versus ₹20.99 crore.

• Adjusted for earlier-year tax and depreciation items, profit available for appropriation was ₹23.64 crore, compared with ₹21.07 crore.

• Interest and other financial expenses declined to ₹22.77 crore from ₹24.42 crore despite higher borrowings and capital spending.

Outlook and guidance

• FY 2005-06 capital expenditure was planned at ~₹45 crore, comprising ~₹30 crore fresh spending plus ~₹15 crore already committed.

• PVC pipe capacity was planned to increase from 54,000 to 66,000 tonnes per year; management expected VAT changes to support 15–20% market demand growth.

• Packaging films, protective packaging and cross-laminated film were each expected to grow by more than 20%, more than 20% and 25% by volume, respectively.

• Cross-laminated film exports were expected to grow by more than 50% by volume; furniture aimed to raise specialty products’ share by value from 11% to 25% within 12 months.