The Supreme Industries (SUPREMEIND) Q4 98/99 earnings summary

Executive summary

• FY ended 30 Jun 1999: polymer processing reached 66,858 MT; adjusted for discontinued multilayer-sheet activity, volume grew 14% across eight businesses. Plastic-product turnover was Rs. 506.93 crore.

• Diversified operations across eight businesses and 12 manufacturing locations supported resilience; leadership positions and product-range expansion remained strategic priorities.

Financial highlights

• Total income was Rs. 557.53 crore versus Rs. 482.29 crore; sales were Rs. 554.41 crore versus Rs. 479.08 crore, and other income was Rs. 3.12 crore versus Rs. 3.21 crore.

• Operating profit was Rs. 86.26 crore versus Rs. 76.37 crore; PBT was Rs. 18.25 crore versus Rs. 16.52 crore; PAT was Rs. 17.53 crore versus Rs. 15.60 crore.

• PAT included an Rs. 7.86 lakh write-back of excess depreciation provision from earlier years; proposed equity dividend was 70%, or Rs. 7 per share.

• Exports were Rs. 15.83 crore versus Rs. 14.96 crore; capital expenditure was Rs. 25.15 crore, funded from internal accruals.

Outlook and guidance

• Eight businesses were expected to deliver medium-term volume growth above 15%; FY 1999-2000 plastic-products turnover target was Rs. 580–600 crore.

• FY 1999-2000 targets included at least 20% pretax return on equity after depreciation, debt reduction of at least Rs. 35 crore, and interest cost near 6% of product turnover.

• Planned FY 1999-2000 capital investment was about Rs. 20 crore, to be funded entirely from internal accruals; furniture division planned 15 new models.

• Protective packaging capacity was expected to be fully utilized within one to two years; material-handling crates targeted 20% annual compounded growth over three years.