The Supreme Industries Limited (SIL) Announces Audited Financial Results For The Year Ended 30th June, 2012.

Online, July 20, 2012 (Newswire.com) - The Supreme Industries Limited (SIL), India's leading Plastics processors, announced its Audited financial results for the year ended 30th June, 2012, at its Board Meeting held today.

The Company processed 2,45,700 Tons of Polymers as against 2,23,751 Tons (excluding discontinued businesses) of Polymers in the previous year, reflecting a growth of 9.81% in Polymer Processing.

The Consolidated financial performance highlights for the year ended 30th June, 2012, are as follows -

• SIL's, Total Income and Operating Profit for the year amounted to
Rs. 2965.65 crores and Rs. 471.89 crores, as compared to Rs. 2469.46 crores and Rs. 357.39 crores, for the previous year, recording an increase of 20.09% and 31.18% respectively.

• The Profit before Tax and Profit after Tax, for the year amounted to
Rs. 347.41 crores and Rs. 232.37 crores, as compared to Rs. 257.46 crores and Rs. 169.73 crores, for the previous year, recording an increase of 34.94% and 36.91% respectively.

The financial performance is summarized below -
(Rs. in crores)
Particulars Financial Results for the year ended 30th June 2012
2012 2011 Change (%)
Total Income 2965.65 2469.46 20.09
Operating Profit (PBDIT) 471.89 357.39 32.04
Cash Profit (PAT + D) 314.17 257.75 21.89
Profit Before Tax 347.41 257.46 34.94
Net Profit (Standalone) 232.37 169.73 36.90
Net Profit (Consolidated) 241.68 195.84 23.41

Dividend
The Board of Directors has recommended payment of Final Dividend @ 225% (Rs.4.50 per Share) on 12,70,26,870 Nos. of Equity Shares of Rs. 2/- (F.V.) each, which together with Interim Dividend of 75% i.e. Rs. 1.50 per equity share and tax on distribution of Dividend will absorb a sum of Rs. 88.58 Crores as against Rs. 63.55 Crores in previous year.

Mr. M. P. Taparia, Managing Director, The Supreme Industries Limited, said:

1. The growth in the Product segments of the Company have been as under :-
(i) Plastic piping system business grew by 14% in volume and 28% in value terms.
(ii) Packaging Product Segment grew by 9% in volume and 19% in value terms.
(iii) Industrial Products segment grew by 8% in volume and 14% in value terms.
(iv) Consumer Product segment (excluding discontinued business of PP Mats) grew by 6% in value and degrowth of 10% in volume terms.

2. The overall Sales in the Value added products has gone up to 31.50% of the Total Sales as against 29.34% in the last year.

3. The Company has committed Capital Expenditure of Rs.280 Crores during the year for augmenting certain capacities, new moulds and balancing equipments at its several existing sites apart from putting up three new manufacturing facilities.

4. The significant events in the last year are as under :-
(i) Major capacity expansion undertaken in Cross Laminated Film Products capacity. 3 new extrusion lines ordered for an aggregate capacity of 12,000 MT against existing capacity of 18,000 MT p.a.
(ii) "Composites" identified as new area for growth. Composite LPG cylinders and pipes project already in progress. Focus on hunting for new products and opportunities in this sector.
(iii) Commercial Corporate Park "Supreme Chambers" ranked 2nd in All India Survey of Top 200 Green Buildings by the prestigious "Construction Week" magazine.
(iv) Puducherry Unit of the Company awarded "TPM Excellence Award" from Japan Institute of Plant Maintenance (JIPM), Japan.
(v) Major Expansion/ Diversification/ Setting of new Units in progress.
- Protective Packaging Unit at Hosur (TN) - To commence production by September 2012.
- Cross Laminated Film Products Unit at Halol (Guj.) - Part of the capacity to be operational by October 2012.
- Composite LPG Cylinder & Composite Pipe Unit at Halol (Guj.)
- Pipes to be operational by November 2012.
- LPG Cylinder to be operational by March 2013
- Plastic Piping System at Malanpur (MP) - Part capacity to be
operational by October 2012.

5. The overall growth prospects are as under :-
(i) The Indian economy GDP may cross $ 5 Trillion GDP p.a. from the current level of $ 1.5 Trillion GDP p.a., latest by 2020. The Company is seeing adequate opportunities to go on growing in its business. The Company's focus is thus to give further impetus to it's growth plan by giving additional drive to grow.
(ii) In the current year 2012-13, the Company sees volume growth of Plastics in the country between 10% - 12%. However, the Company is aiming to grow its business by 16% in volume in the current year. The Company expects to grow by around 25% in value. The increased percentage of turnover growth compared to volume will be due to increased share of value added products and normal inflation prevalent in the country's economy..
(iii) The Company is seeing increasing potential to participate in export markets. The Company is taking steps to boost the export of Plastics Pipe System, Cross Laminated Film products and Performance Packaging Film, during the current year. The Company may add some other products also to boost export growth in the current year.

6. The Company envisages a total capital investment outlay in excess of about Rs.1,100 Crores over a period of 5 years from 2011-12 to 2015-16 in addition to Capex for new products in Composites. In view of Company's potential to generate healthy cash flows from its operations together with better management of Working Capital, the Company is reasonably confident to fund its future expansions from Internal Accruals and Supplier's Credit. Moreover the sale proceeds from "Supreme Chambers" will provide additional funds to meet its future Capex requirements .

About The Supreme Industries Limited

The Supreme Industries Limited is India's leading processors of plastics, offering a wide and comprehensive range of plastic products in India. The company operates in various segments viz. Plastics Piping System, Packaging Products, Industrial Components, Material handling system, Cross Laminated Polyethylene Films & Products thereof and Furniture.

Supreme Industries has 19 technologically advanced manufacturing facilities located at various places spread across the country. Before March, 2013, the Company will have 22 manufacturing sites against 19 sites, which are currently operating. The company has built up excellent relationship with its distributors and is also providing orientation to them, in order to ensure proper service to ultimate customers.