The Supreme Industries (SUPREMEIND) Q4 96/97 earnings summary

Executive summary

• FY ended 30 June 1997 turnover was Rs. 413.93 crore versus Rs. 406.15 crore; profitability was pressured by higher receivables and financing costs.

• Capacity additions and product conversions supported growth in moulded products, furniture, PVC pipes and fittings, and food serviceware, alongside a restructuring and expansion programme.

Financial highlights

• Turnover Rs. 413.93 crore versus Rs. 406.15 crore; sales Rs. 411.71 crore and other income Rs. 2.23 crore.

• Profit before tax Rs. 12.14 crore versus Rs. 16.54 crore; profit for the year after tax Rs. 12.12 crore versus Rs. 16.52 crore.

• Interest and other financial expenses rose to Rs. 35.08 crore from Rs. 31.46 crore; depreciation was Rs. 18.24 crore versus Rs. 15.78 crore.

• Export products, including deemed exports, were worth Rs. 17.23 crore versus Rs. 24.02 crore, mainly reflecting lower deemed exports and sluggish African and Middle East markets.

Outlook and guidance

• PVC pipes and fittings targeted 20% volume growth; fabricated fittings and automation investment were intended to improve cost competitiveness and broaden the product offer.

• PP mats volume grew 15%; further capacity additions through direct and ancillary-unit investment were planned.

• Rs. 68 crore of modernisation, balancing equipment and capacity expenditure was planned for FY 1997-98, funded through internal accruals and borrowings.

• Management expected local commodity-polymer supply to keep raw-material prices affordable; import dependence was targeted to fall from 27% to ~10%.