SUPREME Industries showed a moderate growth in its sales and operating profit during the December 2007 quarter led by higher volumes. The momentum is expected to continue in the coming quarters given the commencement of the company’s additional production capacities. Supreme’s net sales rose 8% to Rs 288.1 crore.
Despite higher sales, the company could curb cost on account of efficient raw material management. To keep costs low, the company procures its raw materials in large size cargos and sells the excess quantity to smaller players. Thus, polymer trading has emerged as a complementary business for the company.
A weak dollar has also helped in bringing down the cost of imported inputs. As a result, operating profit grew 10.2% — faster than the growth in sales — to Rs 30.3 crore. Net profit jumped 37% to Rs 13.1 crore, aided by a Rs 2.2 crore extraordinary profit from sale of land in Haryana.
The company is investing over Rs 300 crore in setting up a mega plastic products plant at Gadegaon in Maharashtra. Spanning over 140 acres, the plant would become the largest plastic processing unit in the country once fully commissioned. Production under the first phase has begun this month. Currently, it manufactures predominantly PVC pipes and the production of other products will start gradually from February.
Over the next couple of years, the plant will be scaled up to its full capacity of 1,50,000 tonnes of polymers every year. The company plans to expand PVC fittings capacity at its Jalgaon facility within the next two to three months. Its new plant near Pune to manufacture protective packaging products is likely to commence by end January 2008.
The company has been investing in capacity additions, which are now coming on stream. In the coming quarters, the additional volumes from new capacities may drive sales growth.
Despite higher sales, the company could curb cost on account of efficient raw material management. To keep costs low, the company procures its raw materials in large size cargos and sells the excess quantity to smaller players. Thus, polymer trading has emerged as a complementary business for the company.
A weak dollar has also helped in bringing down the cost of imported inputs. As a result, operating profit grew 10.2% — faster than the growth in sales — to Rs 30.3 crore. Net profit jumped 37% to Rs 13.1 crore, aided by a Rs 2.2 crore extraordinary profit from sale of land in Haryana.
The company is investing over Rs 300 crore in setting up a mega plastic products plant at Gadegaon in Maharashtra. Spanning over 140 acres, the plant would become the largest plastic processing unit in the country once fully commissioned. Production under the first phase has begun this month. Currently, it manufactures predominantly PVC pipes and the production of other products will start gradually from February.
Over the next couple of years, the plant will be scaled up to its full capacity of 1,50,000 tonnes of polymers every year. The company plans to expand PVC fittings capacity at its Jalgaon facility within the next two to three months. Its new plant near Pune to manufacture protective packaging products is likely to commence by end January 2008.
The company has been investing in capacity additions, which are now coming on stream. In the coming quarters, the additional volumes from new capacities may drive sales growth.
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