Supreme Industries shares jump 10% after Q4 sales volumes jump 33% YoY
In Q4FY24, Supreme Industries Profit After Tax (PAT) surged by 126 basis points to reach Rs 314.48 crore, compared to Rs 310.56 crore recorded in Q4FY23. Additionally, the company witnessed a 16% year-on-year growth in revenue for the quarter ended March 2024, with revenue standing at Rs 2,609.61 crore compared to Rs 2,248.28 crore in Q4FY23.
Shares of surged 10% to the day’s high of Rs 4,820 in Monday’s session after the company posted a 33% increase in sales volume to Rs 1,95,369 crorefor Q4FY24 on Friday.The PAT increased by 126 bps at Rs 314.48 crore for Q4FY24, while it stood at Rs 310.56 crore in Q4FY23.
For the quarter ended March 2024, the company’s revenue also increased by 16% YoY from Rs 2,609.61 in Q4FY23.
The board of directors also recommended payment of a final dividend of Rs 22 per share for the year ended 31st March 2024 which together with an interim dividend of Rs 8 per share aggregates to Rs 30 per share for the current year.
The company has plans to commit capex of about Rs 1500 crore including carry-forward commitments of Rs 496 crore at the beginning of the year. The company plans to establish advanced manufacturing facilities in Malanpur for industrial valves and in Kanpur for uPVC products. Additionally, they aim to expand capacities for various piping products, introduce new furniture models, set up protective packaging facilities, and install solar energy generation plants and balancing equipment across multiple locations.
“During the year under review, the company achieved volume growth of about 33% in Plastic Piping System made from different plastic materials. Overall, the Company sold 501001 Tons of Pipe System compared to 375046 Tons in the preceding year. However, due to a reduction in PVC resin prices, revenue growth was at about 15% over the previous year. The company’s entire range of plastics products is poised to grow this year. The Company is also taking several initiatives to boost export of Plastics products out of its product range. The response to this initiative is encouraging,” said M. P. Taparia, Managing Director, The Supreme Industries Limited.
Taparia further added, “The Company has 36 plastic piping Systems in the division and plans to add another 5 new systems viz. Acoustic PP Pipe System in collaboration with Poloplast GmbH of Austria, Polyethylene Gas Piping System, PERT Piping System, PE single wall corrugated Pipes, and Rainwater Harvesting System (Infiltration modules for ground recharge and storage) during the current year.”
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Source: Stocks-Markets-Economic Times
