Supreme Industries Q4FY21 profits increased four-folds at Rs 450 crore year-on-year (YoY). Revenues are up 45-46 percent at Rs 2,100 crore. The company also saw a significant margin improvement.
Speaking to CNBC-TV18, MP Taparia, MD of the company, said, “Last year the fourth quarter was affected because the company was closed in the second half of March. Due to increase in polymer prices, the value has gone up, and we had increases sale of value added product. There was inventory gain of around Rs 100 crore and that is why the profit has become better.”
Taparia also said that the company will be able to maintain margins around the current levels, going forward.
“Our margin is around 20.4 percent and we can attribute 3.2 percent inventory gain. So, the operating margin is around 17.2 percent. We hope that we will be able to have a margin around that price,” he said.
He further added that they are consistently increasing the value added business and will continue to increase it, going ahead. We are continuously increasing value added business. Last year our value added business had gone up from 37.9 percent to 39.7 percent. The company aims to go increasing the value added percentage,” he said.
He also said that in terms of sales, the company clocked a business of Rs 495 crore in April as compared to last year turnover of Rs 145 crore. However, he said that as compared to March 2021, there has been a decline in sales in April due to restrictions in many states.Watch the video for more.