Supreme Industries Q2 consolidated net rises by 25.35 pc to Rs 174.95 cr
Mumbai/UNI: Supreme Industries has reported a rise of 25.35 pc in its consolidated net profit for the quarter ended September 30, 2020 at Rs 174.95 crores as against net profit of Rs 139.57 crores for the quarter ended September 30, 2019.
Total income for the quarter ended September 30, 2020 grew by 8.13 pc to Rs 1374.86 crores as compared to Rs 1271.44 crores for the same quarter a year ago, company said in a filing with BSE.
Mr MP Taparia, Managing Director, the Supreme Industries Limited, said, ''The negative impact of pandemic on the business has started withering down. After July, the intermittent lockdowns were mostly not extended in many parts of the Country and opening up of economy has progressed. This has broadened business prospects of the Company since August in all its segments.
By judicious product mix and cost control, the Company was able to achieve significant increase in its' profit, in the second quarter. In spite of weak working of the first quarter, the Company could attain higher profit in the First half of the year compared to corresponding period of previous year.
The harvesting of Kharif crops are moving briskly. The crop output is expected to be better than last year. With most of the water dams are close to full capacity, it is expected that Rabi crop sowing may be in a larger acerage as compared to last year. With higher MSP declared by Government and various other supports provided, the rural area economy and Tier III and IV Towns economy is expected to do better than last year.
With the return of migrant workers on most of the construction sites, supported with lower rate of interest and lower rates of stamp duty in some States, along with drop in prices of residential homes, the demand of new homes has picked pace throughout the Country. Consequently, the Company's Pipe System for Housing is also seeing better demand from September onwards.
Packaging segment is witnessing good demand supported by many new applications/SKUs targeting agriculture sector and customized requirements. Material Handling Products are being extensively used for logistic solutions, Fruits & Vegetable and Fisheries segments along with revival of demand for Industrial Applications.
Raw material prices, except PVC resin prices, remain range bound. PVC prices, due to tight availability are still making an upward march. It is expected that with the starting of plants in USA and other countries coupled with lower winter demand for housing in USA, Europe, China and other parts of the World, prices may start softening from January 2021 onwards.
The Company's investment plans are going as envisaged. It is expected that Orissa land deal may fructify by November. Company is exploring to put up new plants in other states, for which land negotiations are progressing in Assam and Tamil Nadu.
The Board of Directors of company at its meeting held on October 28, 2020, has approved payment of Interim Dividend of Rs 5 per Share on Equity Shares of Rs 2 each.