The Supreme Industries (SUPREMEIND) Q4 97/98 earnings summary

Executive summary

• FY ended June 30, 1998: polymer processing rose to 59,945 MT from 46,513 MT; turnover reached Rs 482.29 crore, while falling polymer prices kept revenue growth below volume growth.

• Profit after tax was Rs 1,560 lakh, up from Rs 1,212 lakh; EPS was Rs 14.38 versus Rs 11.85, and the recommended equity dividend remained Rs 6 per share.

Financial highlights

• Total income was Rs 48,229.03 lakh versus Rs 41,393.13 lakh; sales were Rs 47,908.28 lakh versus Rs 41,170.60 lakh.

• Profit before tax was Rs 1,652.01 lakh versus Rs 1,214.20 lakh; after Rs 92 lakh MAT and wealth-tax provisions, profit after tax was Rs 1,560.01 lakh.

• Operating profit before working-capital changes was Rs 7,366.65 lakh versus Rs 6,399 lakh; PBDT/sales was 7.6% versus 7.3%.

• Exports were Rs 16.90 crore versus Rs 17.73 crore, affected by sluggish Middle East and African markets and Asian turmoil.

Outlook and guidance

• Planned current-year investment was Rs 15 crore for balancing equipment, utilities and moulds; volume growth of more than 20% was anticipated.

• Full utilization of converted Food Serviceware capacity was expected in the second half of the current year; Protective Packaging growth was expected from added capacity.

• Export growth was targeted through new-market development; polymer prices were expected to remain affordable absent major rupee depreciation against the US dollar.

• The debt/equity ratio was targeted to move toward 1:1, from 2:1 reported for FY98.