Supreme Industries tumbles 6% as Q3 profit declines 21% YoY

NEW DELHI: Shares of Supreme Industries gave up 5.8 per cent in early trade Tuesday as the plastic products maker reported a 21.31 per cent decline in consolidated profit to Rs 245.72 crore for the quarter ended December 2021.

The company had posted a net profit of Rs 312.28 crore during the October-December quarter of the previous fiscal.

The company’s scrip fell to a low of Rs 2,007.40 as against the previous close of Rs 2,130.30 on the BSE.

According to a PTI report, the company’s revenue from operations was up 5.49 per cent to Rs 1,945.11 crore during the quarter under review as against Rs 1,843.80 crore in the corresponding period of the previous fiscal.

Supreme Industries total expenses were at Rs 1,685.16 crore, up 12.39 per cent in October-December as against Rs 1,499.35 crore in the same period a year ago.

"The Polymer prices were extremely volatile in the quarter. Starting November, PVC prices have dropped by Rs 25 i.e. 15% per kg. The prices of other polymers also swung wildly during the quarter,” Supreme Industries Managing Director M P Taparia was quoted as saying in the PTI report.

Such a swing in the prices has affected overall demand for the products. The products, where demand was driven strongly by distributors have seen large scale destocking in the quarter, Taparia was quoted as saying.

The overall turnover of value added products decreased to Rs 665 crores during the current 3rd quarter as compared to Rs 758 crores in the corresponding period of previous year resulting Degrowth about 12 per cent, PTI’s report said.