Plastic product maker Supreme Industries on Monday reported a 64.13 per cent decline in consolidated profit at Rs 82.02 crore in the second quarter ended September 2022, impacted by a fall in PVC resin prices.
The company had posted a net profit of Rs 228.71 crore during the July-September quarter of the previous fiscal, Supreme Industries Ltd said in a regulatory filing.
Its revenue from operations went up 8.19 per cent to Rs 2,086.60 crore during the quarter under review as against Rs 1,928.54 crore in the corresponding period of the previous fiscal.
Supreme Industries' total expenses were at Rs 2,005.52 crore, up 19.7 per cent in Q2/FY23, as against Rs 1,675.56 crore in the year-ago quarter.
Supreme Industries Managing Director M P Taparia said: "Plastics Pipe System business profit was severely affected due to continued fall in PVC resin prices in the second quarter, which started with effect from April itself." The company is supplying piping systems from different polymeric materials also, other than PVC, which overall resulted in a positive outcome in this segment, in spite of severe fall in PVC prices.
Supreme Industries sold 1,11,803 MT (metric tonnes) of plastic goods during the second quarter of the current year against sales of 1,02,673 MT, achieving volume growth of about 9 per cent.
"In such difficult business conditions, the company's continuous volume growth in the second quarter was quite encouraging. With steep fall in PVC resin prices where prices have dropped by Rs 55/per kg i.e, 38 per cent since April of this year augurs well for large volume growth in the second half of the year, as the system becomes very affordable," he said.
Its board has declared an interim dividend of 300 per cent, which is Rs 6 for per share having a face value of Rs 2 each for FY23.
Shares of Supreme Industries Ltd on Monday settled at Rs 2,171.30 on the BSE, up 6.67 per cent from the previous close. PTI KRH HVA
Checkout Budget Highlights 2023
