The Supreme Industries (SUPREMEIND) Q4 99/00 earnings summary

Executive summary

• Polymer processing rose to 67,262 tonnes in FY1999-2000 from 66,858 tonnes; turnover reached Rs. 565.72 crore, while profit after tax declined to Rs. 15.56 crore from Rs. 17.53 crore.

• Higher input costs, a contraction in PVC pipes and restructuring of the mats business constrained overall growth and profitability.

Financial highlights

• Sales were Rs. 560.96 crore versus Rs. 554.41 crore; total income was Rs. 565.72 crore versus Rs. 557.53 crore.

• Profit before tax was Rs. 16.73 crore versus Rs. 18.25 crore; profit after tax was Rs. 15.56 crore versus Rs. 17.53 crore.

• Operating profit was Rs. 80.32 crore versus Rs. 86.26 crore; exports increased to Rs. 18.94 crore from Rs. 15.83 crore.

• Equity dividend was 70%, including 50% interim dividend paid and 20% final dividend recommended; all Rs. 8.25 crore of preference shares were redeemed during the year.

Outlook and guidance

• Raw material prices were expected to remain affordable with increased domestic supply; stabilized PVC resin prices were expected to support recovery in lost business.

• Seven new or expanded units, principally for crates and furniture, were expected to be commissioned before year-end; protective packaging capacity was expected to be fully utilized by June 2001.

• Flexible film exports were targeted to exceed 400 tonnes in FY2000-01, versus 165 tonnes exported in FY1999-2000.